GSE-120621
Another Post-Conservatorship Damoclean Sword
As we noted on Friday, Senate Banking Ranking Member Toomey asked SEC Chairman Gary Gensler a trick question about GSE obligations at the very end of a lengthy letter focused principally on cryptography. Gensler replied that, once Fannie and Freddie leave conservatorship, their status as federal instrumentalities might well end. Were the SEC to think so at the time, trillions in agency investments would be quickly liquidated to conform to regulatory, market, or sovereign investment restrictions.