Monday, August 10, 2015

Just thinking out loud

Wells Fargo has a market cap of about $100 billion; Freddie Mac's is under $4 billion.
Wells Fargo has been well managed for years; Freddie, not so much.
Wells Fargo has long had a higher standalone credit rating than Freddie.

Might it make sense to allow a GSE to become a subsidiary of a bank? As I said, just thinking out loud...

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