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October 19, 2015

How Not to Fix Fannie and Freddie

“The recent push to recapitalize Fannie Mae and Freddie Mac and release them from conservatorship is misguided.

“Proponents of the “recap and release” proposal claim homeowners and taxpayers would benefit if the federal government ceded control of the mortgage finance giants to private shareholders.

“Just the opposite is true. Recap and release could raise the cost of mortgages for Americans, and potentially expose taxpayers to another painful bailout.”

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Read the full BloombergView column by Antonio Weiss here.

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