New Studies Support Portfolio Caps for GSEs – But Would They Drive the GSEs to Abandon Their Charters?
April 7, 2006
A new report by the Federal Reserve Bank of Atlanta endorses proposals to cap the retained portfolios of Fannie Mae and Freddie Mac to limit the systemic risk it says the government-sponsored enterprises pose. At this point in the stalled political debate over this issue, however, it’s questionable whether more research will move either side. …