Last night, Treasury and FHFA announced an agreement on the GSEs’ conservatorship unsatisfactory to all concerned and highly objectionable to many of those on the Hill with the power to change it. However, we doubt the new Congress will be any more able to reform the GSEs than any of the old ones equally determined to do so. And, even if Congress could, it won’t anytime soon because of the flood of critical issues and nominations….

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