Monday, December 1, 2014

Sen. Shelby’s views on the conservatorship


A December 2011 Think Advisor piece also addressed Sen. Shelby’s views on the conservatorship:
“As part of an ongoing series of hearings on how to reform housing finance, the Senate Banking Committee heard testimony on Tuesday from the Federal Housing Finance Agency’s first inspector general, Steve Linick.
“Sen. Richard Shelby, R-Ala., ranking member on the committee, said in his opening remarks that ‘first and foremost,’ Linick ‘must provide oversight of FHFA’s conservatorship of Fannie and Freddie to ensure that taxpayer dollars are spent wisely.’
“Shelby went on to say that the IG’s [Inspector Gerneral’s] work ‘shines a light on the larger issue of the costs arising from the administration’s failure to propose a detailed plan to end the conservatorship of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC),’ adding that it has been three years and 98 days since the conservatorship began. The conservatorship, Shelby said, ‘was never intended to last this long. Nor was FHFA designed to handle the ‘conservatorship to nowhere’ that we face today.’”
Shelby was tired of the conservatorship three years ago!
This gives reason to be cautiously optimistic about how Sen. Shelby might approach shareholder rights in Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) reform. 

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