Fannie and Freddie To Merge Select OperationsSubmitted by SteveMT on Mon, 03/04/2013 - 19:53
TBTF will get even bigger. 2 X 0 = 0 & Fascism = Fascism
The Fannie Mac Daddy: Fannie Freddie To Merge Select Operations
In what we are sure will be a BLS job creating moment, Fannie Mae and Freddie Mac will create a common platform for issuing MBS as they wind down operations and plan for a future in which the two companies no longer exist. Big is about to get bigger as Bloomberg reports, these two GOEs will start sharing risk with private financiers in the single-family loan market. FHFA head Ed DeMarco comments that they are beginning to move to a "post-conservatorship world," though we assume still as explicitly and implicitly guaranteed by the good taxpaying public of America. The merger and creation of a joint securitization company with the goal of executing $30bn each in transactions partnered with the private sector will attempt to reduce that taxpayer load and "ease the transition from where we are today to wherever lawmakers decide the country ought to ultimately go."