Treasury to Meet With GSEs over Debt-Issuance Limits As Time for Enacting Reform Legislation Slips Away
July 13, 2006
Treasury Department officials are set to meet in the next few days with representatives from the government-sponsored enterprises to discuss possible restrictions on their debt issuance, the key ingredient that fuels portfolio growth and revenue at Fannie Mae and Freddie Mac. The Bush administration is considering requiring quarterly reports from the GSEs that would precisely indicate how much debt they expect to issue and retire over an upcoming quarter. Any issuance that exceeded that amount…