Skip to main content

  • Comment Detail

  • Date: 08/31/20
    First Name: J
    Last Name: Angel
    Organization: FnF Fellow Travelers
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AA95

  • Comment

    Thank you for a yeoman's effort in advancing the future of our GSEs. You have done more in your brief tenure than your three predecessors, combined. I am writing to you, today, as a concerned citizen that fears the approach of a major economic recession and another Financial Crisis if some cure is not found for the coronavirus pandemic. My concern is that you are receiving a barrage of comments to lower capital requirements at a time when more may be the only antidote to receivership. I know I do not need to remind you that current administrative reform measures contain no footprint reduction for FNMA or FMCC and so the enterprises must bear the brunt of any downturn j
    until or if Congress acts on a bill to expand chartering for new competition. This is not a fortuitous time to be lowering capital requirements, especially the CET1.

    I do not wish to see a repetition of 2008 and further bailout of the Enterprises at enormous taxpayer expense. And since the sheer size of Fannie Mae and Freddie Mac is so much larger in 2020, safety and soundness can only require a subst6antial level of capital, well in excess of the combined $98.5 billion capital held prior to Fall, 2008.

    I am a retired business man with no banking, real estate or investment position in this conversation. I just wanted to somewhat anonymously voice my concerns before you finalize your plans to proceed. Thank you for your service to our Country, Dr. Calabria.