Tele-Press Conference:
Investor Unite’s Tim Pagliara, Former U.S. Rep. Eva Clayton, Discussed Why Fannie & Freddie’s Failed Their Stress Test

U.S. Treasury’s Profit Sweep of Housing Giants Threatens Sustained Recovery

WASHINGTON, May 2, 2014 – Tim Pagiliara, Executive Director of Investors Unite and Eva Clayton, Former N.C. Congresswoman and former Assistant Director General of the UN Food and Agriculture Organization, discussed on a media teleconference yesterday that Fannie Mae and Freddie Mac had failed federally mandated stress tests due to the terms of the Third Amendment which has siphoned away $205 billion in profits. They emphasized how the 100% profit sweep undermines the recapitalization of the GSEs leaving shareholders empty handed, while threatening the recovery of the U.S. housing market.

Tim Pagliara
“What would have happened if the Third Amendment hadn’t been passed and the U.S. Government were only taking the 10% of profits they were entitled to? Fannie and Freddie would now have $50 billion worth of excess capital….Under the Third Amendment, they have had no ability to retain capital…In the last 14 months $205 billion was taken and has been earmarked toward deficit reduction.

“The stress test was an academic exercise meant to push the Administration’s agenda that Fannie and Freddie should be eliminated. It illustrates how outrageous and egregious the government and administration’s behaviors have become toward investors.”

Eva Clayton
“The stress tests revealed that even though the U.S. housing market has returned to good health, the Third Amendment has weakened these institutions…The Third Amendment runs counter to the support of affordable housing goals and leaves urban areas coming up on short side of the stick.”

Bios:

Tim Pagliara, Executive Director of Investors Unite and a shareholder invested in Fannie Mae and Freddie Mac. In a recent statement, Pagliara reiterated demand for an inclusive process.

Eva Clayton, former congresswoman from N.C., former Asst. Director General of the UN Food and Agriculture Organization. This week, Clayton spoke out against Johnson-Crapo for its failure to address affordable housing goals.

To listen to a recording of the call click here.

Contact [email protected] for full transcript.