Leaked Treasury memo on Fannie, Freddie fuels fire for sweep critics
HousingWire - April 30, 2015 - May 1, 2015
By Trey Garrison
Investors Unite Executive Director Tim Pagliara, one of the leaders in the movement among shareholders fighting the Treasury’s sweep of GSE profits, disagrees, telling HousingWire that this was a smoking gun that shows Treasury never intended the conservatorship to be temporary, and, in his words, intentionally committed fraud.
“I think part of what’s going on is that people have some explaining to do, because they need to explain how they said they had to have a 10% capital requirement and their own people said it’s 3%-4%,” Pagliara said. “This isn’t some one-off, it was signed off on by seven people in Treasury including the general counsel’s office. When the private sector is saying that you need 2.5%-5% capitalization and they ridicule and attack you, then you see the inconsistency when Treasury itself is saying 3%-4%.
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