In our last analysis of FHFA action on GSE capital, we noted that Director Calabria correctly concludes that simply ending the PSPA sweep does not suffice at anything close to real recapitalization.  Indeed, he said so again Monday when the PSPA was amended.  Here, we turn to the 2018 proposal and subsequent FHFA and banking-agency actions to assess what FHFA will have to do to achieve the capital-equivalent framework established as part of the Administration reform plan.  In short, it’s a lot.

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