Amid reports that the Federal Housing Finance Agency is meeting with the White House on the ongoing sweep of Fannie Mae and Freddie Mac profits to the U.S. Treasury, ICBA repeated its call for an end to the arrangement.
In a statement, ICBA President and CEO Cam Fine noted that the government-sponsored enterprises will have transferred nearly $100 billion more than the capital infusion they received during the Wall Street financial crisis with their latest profit sweep.
“ICBA continues to call on FHFA Director Mel Watt and Treasury Secretary Steve Mnuchin to end this destructive sweep of GSE earnings and to allow both companies to begin to rebuild their capital buffers to avoid another taxpayer bailout,” Fine said. “Community banks depend on the liquidity that Fannie Mae and Freddie Mac provide, as do American homebuyers.”
Read ICBA Release