To Have and to Post

FHFA is proposing a new disclosure regime designed to bring Fannie and Freddie into the public marketplace in a fashion analogous to large U.S. banks.  We expect no revolution akin to the uproar sparked in 2003 when the GSEs were forced to make SEC filings.  This for the first time unveiled the scale of GSE leverage and governance shortfalls that didn’t dent the market but spurred a bout of Congressional reform efforts.  Now, Congress is content with the conservatorships and markets will likely take even more comfort than they did before not just because the GSEs are in better shape, but also of course due to the conservatorship.