stock warrants granting them the right to acquire common stock of each GSE equal to 80% of the value of each company. The GSEs have now been in conservatorship for over 7 years and the Treasury and Obama Administration officials have declared their intention to let the conservatorship continue, deferring GSE reform to the next Congress.
The GOP in the House has pledged to take up GSE reform early in the Congressional year, though it is unclear what priority the Senate is giving a fix for the housing finance system. But as most economic outlooks for 2011 indicate, a bad housing market is going to be the biggest drag on GDP growth in the coming year.
"We have an independent mandate to do what we do and we’ll continue. the "switching costs" and developing a proposal to serve the affordable housing mission – a critical step for successful GSE.