Fannie Mae Stress Test A Farce: Bove by Clayton Browne May 01, 2014, 2:49 pm Rafferty Capital’s Dick Bove published a research report today focusing on the fate of the Johnson Crapo bill and the real import of the news regarding Fannie Mae failing the “severe economic downturn” stress test. Bove highlights that the Johnson Crapo bill to wind down Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) appears very unlikely to emerge from the Senate Banking Committee, and that Fannie Mae could pass even the worst case stress test if the government wasn’t siphoning off its profits. Johnson Crapo not going anywhere According to Bove, barring a miracle revival, the much-bemoaned Johnson Crapo bill is dead on arrival. “The reality is that the sponsors of the Bill do not have the 16 votes necessary to get the vote out of committee. Plus, key liberal Senators do not support th...
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