FHFA Director Mark Calabria walked back the idea of using a consent decree as part of the agency’s plan to recap and release Fannie and Freddie from conservatorship.
Barclays, the largest underwriter of GSE debt bonds, reached a settlement worth $87 million. Separately, a group of 12 financial institutions collectively agreed to pay investors $250 million to settle their claims.
Thirteen major financial institutions have agreed to pay a combined $337 million to settle an antitrust lawsuit accusing their trading desks of engaging in a price-fixing scheme for Fannie and Freddie debt.
A new report allays concerns that a recent request for input from the regulator regarding pooling practices was an indication that something was amiss.
Layton notes that in the first full quarter under the new UMBS regime the Freddie discount fell to just 1 basis point, 80% off its historic average, and dramatically lower than the 10 bp gap in 1Q19.