9.25.20
Friday, September 25, the Financial Stability Oversight Council (FSOC) acknowledged for the first time that any strain on Freddie Mac and Fannie Mae could threaten the overall financial stability of the U.S. Within the acknowledgement, the FSOC endorsed FHFA Director Calabria’s GSE Capital Requirements plan stating that requirements are “materially less than those contemplated by the proposed rule” and would not be able to adequately address the risks that the GSEs pose to stability. While the FSOC deemed the GSEs a potential threat to financial stability, they didn’t go so far as to label them as systemically important financial institutions (SIFIs). In response to the FSOC’s decision, Director Calabria praised the decision stating that they would use the FSOC’s results as they finalize the rule “in the coming months.”