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.

None too thrilled with the FHFA’s decision to re-propose the capital rule for Fannie and Freddie, mortgage lenders are seeking reversal.

Judge Sweeney ruled the court did not have jurisdiction on direct claims. But she allowed the Fairholme plaintiffs to continue their derivative claims, which seek remedies for Fannie and Freddie.

The proposed rule seeks to modify the minimum thresholds, frequency and number of scenarios required to bring the stress test rule for regulated entities in line with new rules that apply to other financial institutions.

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.

Democrats on the Senate Banking Committee want to know the timeline and rationale for the long-awaited recap and release of the GSEs.

Those familiar with the plan say it will target those with longer tenures, suggesting an attempt to trim the number of high-salary staffers.

Trade groups are wary that any capital rule issued after May could be over-turned if Democrats win the White House and control of Congress in the next election.

Federal regulators have issued a request for comment on a review of credit risk-retention standards tied to the qualified mortgage “patch” and exemptions for community-focused and three- to four-unit mortgages.