According to court filings, beginning in 2016, the FHLB-SF developed a proposal for the bank to purchase one of the GSEs. To assist in the process, the bank also engaged the services of McKinsey Consulting.
The Supreme Court will not hear arguments in Collins v. Mnuchin in its current session, but the issue of the constitutionality of the single-director status of the FHFA is still alive. That’s because oral arguments in Seila Law v. CFPB, a case addressing similar issues, are scheduled for early March.
Because it controls the senior class of stock in Fannie and Freddie, the Treasury is in the driver’s seat on recap and release. Former Freddie CEO Layton weighs the government’s options, using AIG as a blueprint.
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