Resolving large financial intermediaries: Update

In this updated article, the authors examine issues surrounding the possible failure of Fannie Mae or Freddie Mac. Finding parallels between resolving insolvent large banks and insolvent housing enterprises, the authors suggest improvements to the resolution of failed housing enterprises.

"We recommend that the minimum and critical capital requirements for the housing enterprises be somewhat increased ... to account for the possibility that the estimated economic value of the portfolio may be

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