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"Should Fannie, Freddie be labeled ‘systemically important’?" by Victoria Finkle
Chuck Gabriel quoted in Victoria Finkle's American Banker article, "Should Fannie, Freddie be labeled ‘systemically important’?"
The article reads:
“The disconnect here is conservatives want tough, banklike capital — but in the end, you’re going to have to allow these companies to be profitable enough to recapitalize,” said Charles Gabriel, president of advisory Capital Alpha Partners.
Perhaps most critically, it won’t take a formal designation for a SIFI discussion to influence the broader debate. Simply raising the issue, or having the FSOC conduct a preliminary review, could ultimately influence reform efforts.
“Just by saying he wants to elevate mortgage securitization as a systemically worrisome activity, what that could do is arm him to push for slightly tougher capital standards,” Gabriel added.