White House Says It Will Remove Mark Calabria as Head of Federal Housing Finance Agency
In an ironic twist, a case brought by Fannie and Freddie shareholders has toppled one of their allies.
In an ironic twist, a case brought by Fannie and Freddie shareholders has toppled one of their allies.
The Court of Claims allowed derivative claims to proceed based on a new and untested legal theory.
Fannie and Freddie investors assumed that the end of conservatorship would result in a windfall. That might be a costly error.
Four years ago, FHFA head Mark Calabria called for Fannie and Freddie to be designated SIFIs. Now he says he opposed that.
The plan would be a huge boost to hedge funds and other investors in Fannie and Freddie while putting taxpayers at risk.
Under an appeals courts ruling, the head of the FHFA could be replaced at will by the U.S. president.
Attorneys for the agency said Wednesday that it was reversing course under its new director, Mark Calabria.
An op-ed in The Hill warns that a plan being shopped on Capitol Hill would recreate the failed system of privatized profits and socialized losses.