Ed Pinto and Patrick Lawler of the American Enterprise Institute argue that the capital standards, even under Calabria’s more conservative rule, are already too weak.
Also, because Thompson is a Democratic appointee, she likely is leaning toward the option of using the government-sponsored enterprises to improve the lot of low-income borrowers.
In general, the proposed rule would reduce the required capital for Fannie Mae and Freddie Mac by decreasing the size of the prescribed leverage buffer...