In an informative, lengthy interview in Friday’s American Banker, FHFA Director Mark Calabria contemplated ways to recapitalize the GSEs above and beyond the pittances that would accumulate with a halt to PSPA sweeps.  Calabria made it clear yet again that the Administration does not plan simply to hand Fannie and Freddie back to shareholders to see what they might be able to cough up – clearly, it is well understood that this would be far less than even a pretense of adequate capital would afford.  So, what could the Administration do short of restructuring the conservatorships into receiverships and bridge enterprises?  A lot, as we show here.

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