Wednesday, 1 April 2015
Last updated 5 hours ago
Nov 21 2013 | 11:36am ET
There will be no hedge-fund-backed recapitalization of Fannie Mae and Freddie Mac, the White House said yesterday.
Gene Sperling, the director of the National Economic Council, said that such a restructuring would not lead to greater stability in the U.S. mortgage market because it would not address Fannie and Freddie's major role in mortgage finance. Sperling did not directly address a proposal last week from Fairholme Capital Management, but made it apparent it was a non-starter.
"I want to make clear our administration believes the risks are simply too great that this would re-create the problems of the past," which led to a $188 billion bailout of the companies.
The White House has previously said it would move forward with plans to wind down Fannie and Freddie. Any recapitalization would require Congressional approval, which does not appear to be forthcoming.
Fairholme last week proposed recapitalizing the companies using preferred shares, an approach backed by Pershing Square Capital Management. In July, Fairholme joined Perry Capital in suing the U.S. Treasury Department for seizing the companies' profits.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…