Washington, D.C. (May 3, 2016)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on Freddie Mac’s first-quarter loss.
“Freddie Mac today posted another quarterly loss driven by market volatility and its impact on the hedging of its investment portfolio. This net loss will not trigger a draw from the U.S. Treasury as Freddie Mac’s and Fannie Mae’s capital buffer bleeds away. However, it is only a matter of time until one or both of them will need a draw, putting the housing market and taxpayers at risk.
“ICBA continues to call on Federal Housing Finance Agency Director Mel Watt and Treasury Secretary Jacob Lew to end this destructive sweep of the government-sponsored enterprises’ revenues. Further, they should follow the Housing and Economic Recovery Act of 2008 and require both GSEs to develop and implement a plan to rebuild their capital buffers to prevent another bailout.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services.