Full videos on NYU fall panel Sept. 2013
get link at google fannie and freddie discussion group, look for subject heading that
Full videos on NYU fall panel
this is a full legal discussion including panelist Richard Epstein.
Yet, even though both Fannie and Freddie are now extraordinarily profitable again, and the taxpayers will soon be repaid in full for all of the bailout funds, a group of lawmakers, led by our own Sen. Bob Corker, has decided to double down on the government’s strong-arm approach by codifying the Treasury’s 100 percent confiscation of dividends — when a significant portion of those dividends and future dividends are clearly owed to the private investors.
At a time when our economy and the housing recovery need even more private investment to help get things moving again, violating the trust of such investors is the last thing the government should do. And the notion that government can just confiscate private property any time it wants, without recourse, is simply outrageous and should be totally unacceptable.
Fannie and Freddie should absolutely be reformed so taxpayers can be protected against future financial threats, but Sen. Corker and the Treasury Department should not be allowed to change the terms of the government’s original agreement in a way that enriches the government while permanently shortchanging the original investors.
I have always been one of Sen. Corker’s strongest supporters, but on this issue, he has clearly missed the mark. Sen. Corker and the Obama Treasury Department should look for strong and simple reforms that further depoliticize and strengthen, not destroy, Fannie and Freddie.
It is time for them to protect both the rights of the American taxpayers and the American investors who supported these institutions in such good faith.
Tim Pagliara is chief executive officer of CapWealth Advisors in Franklin.
available at google fannie and freddie discussion group, which consolidates and amends origiinal complaint for our case against the government on behalf of Fannie Mae. The highlights are as follows:
1) Consolidates with another plaintiff, Erick Shipmon.
2) Addresses issue of FHFA as a government actor and, thus, subjects the FHFA to the takings clause.
The government's response is due by 12/16.
See entire amended complaint at google fannie and freddie discussion group
Fannie Mae and Freddie Mac's roles
will likely increase in the future. It is hard
to imagine how the $11 trillion U.S.
residential mortgage market could attract
enough private capital to replace their
historical share (43% at the end of 2007,
and an even higher 51% as of
September 30, 2009) because a purely
private-sector entity or system can't
replicate Fannie and Freddie's low-cost
funding structure. Moreover, low
mortgage rates, currently hovering near
5%, make managing the interest-rate risk
of 30-year fixed-rate mortgages too
expensive for private-sector originators.
If the government doesn't carefully plan
its exit from its conservatorship, mortgage
rates may increase significantly and
mortgage lending capacity could decline,
creating additional pressures on home
prices. As it is now, average home prices
have fallen as much as 30% from their
2006 peak. Best-case forecasts for 2010
suggest a further decline of 5% to 10%.
Worst-case scenarios estimate that
potential declines could be twice that.
A revitalized Fannie May and Freddie Mac
are seen as the best means to maintain a
stable mortgage market.
but even corker's bill and hensarling's will take years to get through, if at all...plenty of time...corker's timeline for HR 2767 is 5 years....plenty of time to get a presidential pardon