Senate Banking Committee Considers whether GSEs Should Be SIFIs
Commentary by Steven Lofchie
The U.S. Senate Committee on Banking, Housing and Urban Affairs considered testimony on whether Fannie Mae and Freddie Mac should be designated as systemically important financial institutions.
Commentary
Fannie and Freddie are already subject to comprehensive regulation by the Federal Housing Finance Agency. If Congress is not satisfied with the current state of regulation, it should amend the relevant statutes rather than have regulators make the decision through an almost entirely discretionary and non-transparent set of procedures.
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