Bloomberg Law
Oct. 22, 2019, 4:19 PMUpdated: Oct. 22, 2019, 6:48 PM

Fannie Regulator Willing to Wipe Out Shareholders If Needed (2)

Elizabeth Dexheimer
Elizabeth Dexheimer
Bloomberg News

Fannie Mae and Freddie Mac’s regulator, facing scrutiny from Democrats about whether freeing the companies from U.S. control might enrich hedge funds, said he would be willing to wipe out shareholders of the mortgage giants if circumstances called for it.

“I work for the taxpayers,” Federal Housing Finance Agency Director Mark Calabria said Tuesday at a House Financial Services Committee hearing on the Trump administration’s proposal for releasing the companies.

Calabria was responding to heated questions from Representative Bill Foster, an Illinois Democrat, about whether hedge funds including Paulson & Co. stood to reap windfalls under the plan ...