By now, everyone knows the Federal Housing Finance Agency plans to hire an investment banking firm to assist with recap and release plans, but what about the GSEs?
KBW this week significantly hiked its price target on Fannie/Freddie common to $3 and $4 a share, respectively. For years, KBW’s price target for GSE common was a mere $1.
Departing GSE executive David Lowman: “With over six years at Freddie Mac, I want to take advantage of opportunities presented by the rapidly evolving mortgage finance marketplace and its adjacent industries."
Shouldn’t the managements of Fannie and Freddie start preparing for the day when they’re “free” from the shackles of regulatory bondage? Shouldn’t CEOs Hugh Frater (Fannie) and David Brickman (Freddie) be holding high level meetings with their lieutenants regarding strategies for the future?