BankThink: What’s systemic in the secondary mortgage market? Don’t ask FSOC
By Karen Petrou
When Financial Stability Oversight Council announced last week that it is studying the secondary mortgage market’s systemic risks, it reopened questions many thought the Trump Administration buried: who or what is systemic and what then is to be done about it? The FSOC was as transparent as always — not — and provided absolutely no information about which activities are on the griddle or whether individual firms — most notably Fannie Mae and Freddie Mac — are in the dock for potential designation as a systemically important financial institution.