Staff at the Federal Reserve Bank of New York have released a preliminary study of a GSE-reform idea beloved by big banks:  a new private cooperative to take over mortgage securitization.  However, the Fed staff finessed this into a utility model with private insurance risk-protection from the coop. This turns the paper into an analytical assessment of an idea also beloved by the Federal Reserve Board – some form of public utility with USG catastrophic risk insurance. Thus, the details of the paper could play a significant role in the final Administration recommendations, where the FRB will play a vital (if behind closed doors) role.

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