From Tim Pagliara of Investors Unite “Treasury Secretary Nominee Steven Mnuchin and Rafferty Capital’s Dick Bove Tell Fox Business News that the Fed Should End Fannie, Freddie Conservatorship ASAP”
Three days ago the Fox Business Network aired a segment on possible changes coming to the status of the GSEs as a result of the coming Trump administration. I urge you to see what Treasury Secretary nominee Steve Mnuchin said last week and what Dick Bove of Rafferty Capital Markets said this week about the government’s conservatorship of Fannie and Freddie.
Mnuchin says that the Fed’s takeover “makes no sense” while Bove strongly warns against future economic perils if the GSEs aren’t re-privatized quickly. Watch the video here. I’ve copied below that text that the Fox website provides along with the video, but the video itself is much better.
Dick Bove: Fannie Mae, Freddie Mac Need to Leave Govt. ASAP
The Trump Administration’s plan to privatize Fannie Mae and Freddie Mac is gaining momentum and banking analyst Dick Bove, of Rafferty Capital, is urging the President-elect to move quickly because he feels the two entities are in trouble.
“They’re [Fannie and Freddie] acknowledging that they’re going to have negative capital and that’s going to create a crisis,” he said. “Second, they’ve gone back to the policies that Cuomo and Clinton had in place, which put them into trouble in the first place. They’re buying mortgages for down payments of only 3% down. They’re putting money into trust funds which are basically being used to fund subprime mortgages,” he said.
Steve Mnuchin, Trump’s pick for Treasury Secretary, is promising to move quickly on the plan which he disclosed last week during an appearance on FOX Business Network’s Mornings With Maria.
“It makes no sense that these are owned by the government and have been controlled by the government for as long as they have,” he said.
See rest of Bove article on FBN here