Benjamin Kay News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Return is two crucial features. First, they are subject to regulation not by the fed, but subject to regulation by a unit of housing and development. Their own regulator. Their own regulator. Sounds bad, but its actually worse than it is. It sounds bad, and its worse. Good for them, bad for us, turns out. Yeah. Second, they are Given Capital requirements that are about 50 40 below those for commercial banks. Allowed to be highly leveraged. That means fannie and freddie can get into the following business. Youre a commercial bank. You sell me a loan. You had to put 4 in capital behind that loan while you held it, the prudential reserve. I add fannie or freddie only have to put 1. 6 o behind the loan because excuse me, 2. 50 because i have a different standard. If i now create a Mortgage Backed security using all these loans chai charlie and the others sold me and put a guarantee on it, charging 45 cents per hundred dollars for, i now create a Mortgage Backed security backed by 1. 50 and

United statesNew yorkEl salvadorDistrict of columbiaNew yorkerSteve charlesMargaret thatcherBehr sterns lehmanBenjamin kayChai charliePatrick kennedyGiven capitalCapital requirementsFannie freddie6 oMortgage backed