GSEs May Be Released Prior to Full Capitalization
HFSC’s turn today with Treasury Secretary Mnuchin and FRB Chair Powell covered much of the same ground as Senate Banking, continuing partisan battles over the closure of 13(3) emergency facilities and bipartisan calls for additional stimulus. Both Secretary Mnuchin and Chair Powell agreed on the need for fiscal stimulus, with Mr. Mnuchin pushing hard for an additional round of PPP and Chair Powell emphasizing the importance of small businesses to a U.S. recovery. More discussion ensued on the future of the GSE conservatorships, with Rep. Timmons (R-SC) asking what Mr. Mnuchin would consider to be an appropriate amount of capital for conservatorship release.