When the GSE-compensation flap first roiled, we dubbed the bonuses a boobie-prize because of their political cost. Although DeMarco got off relatively lightly today in Senate Banking, FinServ voted 52-4 to ban the bonuses and, tomorrow, the House Oversight Committee will go to the jugular over them. In our view, all of this further paralyzes the GSEs and FHFA at a time when rapid action is vital to market recovery.

The full report is available to subscription clients.  To find out how you can sign up for the service, click here