"Fratantoni argued that competition in the secondary market is beneficial and emphasized that the system is as strong as it has ever been post-crisis."
"Proponents claim merging the GSEs could improve efficiency but Fratantoni countered that post-crisis reforms have addressed excessive risk-taking concerns."
"Fratantoni highlighted that the GSEs currently coordinate in low-value competition areas but their competition is valuable in other market segments."
"The Trump administration aims to offer 5% to 15% of the GSEs' stock in a plan that could value them at approximately $500 billion."
Fratantoni emphasized the importance of retaining at least two government-sponsored enterprises (GSEs) to encourage competition in the secondary market. He noted that a merger might jeopardize the current balance of partnerships with primary markets. The Trump administration is considering merging GSEs and is seeking to sell 5% to 15% of them, valuing them at around $500 billion. Concerns over excessive risk from competition have been lessened through new regulations established after the 2008 financial crisis.
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