The Federal Home Loan Bank of Seattle lost an appeal in an MBS case against Barclays Capital this week in which it claimed the investment banker made false statements or left out certain facts about the securities it sold in 2008. But the Court of Appeals of Washington State ruled that theFHLBank was fully aware of what it was buying at the time.
In roughly 10 business days, Fannie Mae and Freddie Mac – which guarantee half of all mort-gage debt in the U.S. – will run out of capital unless their regulator at the Federal Housing Finance Agency does something about it.
Members of the House Financial Services Committee this week approved a bill that would sus-pend Fannie Mae and Freddie Mac contributions to the Housing Trust Fund if the government-sponsored enterprises don’t pay dividends to Treasury. The panel approved the bill on a partisan vote of 33 to 27.