William M. Isaac
ChairmanWilliam M. Isaac, a former chairman of the Federal Deposit Insurance Corp. and Fifth Third Bancorp, is chairman of Secura/Isaac Group and Blue SaaS Solutions.
William M. Isaac, a former chairman of the Federal Deposit Insurance Corp. and Fifth Third Bancorp, is chairman of Secura/Isaac Group and Blue SaaS Solutions.
The Federal Housing Finance Agency head has said: "The status quo is not acceptable." She could not be more correct.
In an open letter to Sandra L. Thompson, President Biden’s nominee for Director of the Federal Housing Finance Agency, two longtime advocates of the Federal Home Loan banks suggest a new path forward.
Demand for advances from the Home Loan banks has plummeted as the Federal Reserve has flooded the financial system with liquidity. But with a nudge from Congress, these government-sponsored enterprises could remain relevant by broadening their mission and opening membership to more lenders.
As the debate over housing reform heats up, policymakers should give careful consideration to a plan that recapitalizes the government-sponsored enterprises.
As long as Fannie Mae and Freddie Mac exist, they must have adequate capital so taxpayers will never again be compelled to help them meet their financial obligations.
Suspending Fannie Mae and Freddie Mac's regular dividend payments to the Treasury, thus enabling the companies to replenish their reserve capital, would put their future on better footing.
If we can't identify adequate capital to bear mortgage credit losses when they are incurred, aren't we setting ourselves up for another series of bailouts in the next housing downturn?
It's a good idea to raise the asset threshold at which financial institutions are automatically designated as systemically important financial institutions. But Sen. Richard Shelby's proposed legislation for regulatory relief does require one crucial change.