Mnuchin May Face Fight With Watt Over Fannie-Freddie Dividends
- Treasury secretary tells senators payments should continue
- FHFA chief said last week the companies should build capital
Steven Mnuchin, U.S. Treasury secretary, arrives to testify before the Senate Committee on Banking, Housing, and Urban Affairs at the the U.S. Capitol, on May 18.
Photographer: T.J. Kirkpatrick/BloombergThis article is for subscribers only.
Treasury Secretary Steven Mnuchin is on a collision course with the U.S. regulator for Fannie Mae and Freddie Mac after telling lawmakers that he expects the mortgage-finance giants to continue paying dividends to the government.
Mnuchin’s comments at a Senate Banking Committee hearing Thursday came a week after Federal Housing Finance Agency Director Mel Watt told the panel that he might tell the companies to withhold money to build buffers against potential future losses.