Clinton Advisers’ Mortgage Plan Would Tap Investors for Billions
- New paper details proposal for replacing Fannie and Freddie
- Revamp relies on raising up to $125 billion in securities sale
Homes are seen on the west side of the city on June 30, 2005, in Las Vegas.
Photographer: Ethan Miller/Getty ImagesThis article is for subscribers only.
A closely watched proposal to replace Fannie Mae and Freddie Mac would require raising more than $100 billion from private investors, according to its authors who include advisers to Hillary Clinton.
Left unstated is how to deal with current shareholders, who include hedge funds and money managers who are locked in a bitter legal battle with the government over profits generated by the mortgage-finance giants.