The Crapo-Johnson senate committee bill will come up for a vote close to FNMA's earning announcement? That's stupid. So here is another quarter where FNMA make more millions, and that senate committee is crafting legislation to "wind the GSEs down"? It would be very stupid to fix what is not broken. It would also be very stupid to vote for a bill In the light of all the court cases concerning the legality of the GSEs "sweeps amendment".
Seems to me this is theater of the absurd. The sponsors of this legislation and its committee members who would vote for its passage have crafted this bill on the assumption that the government's actions concerning the GSEs conservator status is unimpeachable! What will be THEIR outcome when the courts decide the government actions concerning the GSEs were outside of law/outlaws? Won't these senators look even more stupid when 1) again, the GSEs post another largely profitable quarter and 2) their legislation was based on unlawful actions taken while the GSEs were in conservatorship!
It just won't look good for any senator to vote yes under such circumstances, especially when all those issues come home to roost via the court system and during upcoming earnings seasons. This is 2014, not 2007. Is the plan for the Treasury Department to micromanage not only the GSEs, but all other TBTF institutions? It seems that way now.