Trump’s pick for OMB director sponsored a bill that would boost the shares of Fannie and Freddie

May 17, 2016 3:06 pm ET

The latest housing finance reform bill making the rounds on Capitol Hill offers a bonanza for hedge funds seeking to cash in on their investments in Fannie Mae Mae and Freddie Mac—but the cost to taxpayers would be steep.

Congressman Mick Mulvaney, the South Carolina Republican, introduced the “Housing Finance Restructuring Act of 2016” last month to recapitalize Fannie and Freddie and release them from government control. Last week, the bill got a boost when a dozen conservative groups endorsed it.

“If enacted, the Housing Finance Restructuring Act of 2016 would allow Fannie and Freddie to retain capital and require each institution to maintain similar capital ratios as other large financial institutions. This will guard against future bailouts of the GSEs,” the National Taxpayers Union said in a statement.

Read on.

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