Both GSEs have now paid the government the 10 percent compound rate of return required by the original senior preferred stock agreement, according to the R Street Institute. The think tank’s senior fellow, Alex Pollock, said it’s time to put the senior preferred stock purchase agreement to rest. Fannie just recently joined Freddie in this “10 percent moment.” He said because Treasury has received dividend payments from both Fannie and Freddie that equal the economic equivalent of repayment of the entire principal of their senior preferred stock, plus a full 10 percent yield, “it is now entirely reasonable for it to consider declaring the senior preferred stock retired.”
The Senate this week passed a package of amendments to the Dodd-Frank Act by a vote of 67-31, moving the regulatory reform debate to the House, where Republicans have pushed through a large number of more aggressive changes.
Under Acting Director Mick Mulvaney, the CFPB will rely on state regulators and state attorneys general for more leadership when it comes to enforcement...