Tidying up its rulebook ahead of a possible change to the conservatorship or – a lot less likely – legislation, FHFA today issued new liquidity-risk management standards for Fannie Mae and Freddie Mac. Although described as similar to relevant bank regulation, the FHFA approach is principles-based. Its impact thus will depend on what changes Fannie and Freddie undertake and how well FHFA enforces its liquidity edicts.
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