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ICBA Statement on Second Quarter 2017 GSE Earnings

Independent Community Bankers of America® President and CEO Camden R. Fine issued this statement following the release of second quarter 2017 earnings for GSEs Fannie Mae and Freddie Mac. Both firms reported strong earnings, and as required by the terms of their Preferred Participating Stock Agreements with the U.S. Treasury, will be required to sweep the majority of those earnings, which total just over $5 billion, to the Treasury:

 

By any reasonable analysis, the GSEs have more than repaid taxpayers, yet according to the terms of their 2012 agreements with the Treasury, their debt will never be repaid. Moreover, the GSEs’ capital is scheduled to be swept to zero at the end of this year, which will leave two of the largest financial institutions in the U.S. without any capital to protect taxpayers and support the housing market.

 

ICBA continues to call on FHFA Director Mel Watt to end this unnecessary destructive sweep of GSE earnings, avoid this self-inflicted crisis and taxpayer bailout by following HERA and require the GSEs to rebuild needed capital. The unknown and unpredictable consequences of an additional GSE taxpayer bailout may disrupt this critical source of funding that community banks and home buyers depend on to support the housing market.

 

ICBA supports GSE reform. ICBA’s GSE reform plan provides a clear path for FHFA and policymakers to follow that place the GSEs on sound footing while maintaining broad access for lenders of all sizes. We urge FHFA Director Watt to take the first steps now to end the net worth sweep and require the GSEs to rebuild capital.

 

For more information, visit the Independent Community Bankers of America website at www.icba.org.

 

 

WBA applauds Governor Walker’s inclusion of Fiserv in the Special Session of the Legislature focused on Economic Development. Fiserv is currently evaluating its corporate offices in Brookfield and is considering relocating its headquarters to another state.

 

It is important that Fiserv stay headquartered in the Badger State. We believe Wisconsin should invest in keeping high-quality, high-performing companies here. Fiserv is a Fortune 500 company and deserves investment from the state of Wisconsin.

 

Southeast Wisconsin has a cluster of financial services activities in three key market segments: banking and finance, investments, and insurance. Fiserv is a component of that and helps diversify the economic base and provides Southeast Wisconsin with a sustainable base of professional expertise and skills. The financial services landscape is dynamic and Wisconsin must maintain high-quality employers to support the banking, investment and insurance industries.

 

Having Fiserv stay in the state helps raise the level of service to businesses and adds a community-based technical expertise that Wisconsin needs in order to remain competitive.

WBA would like to thank Governor Walker and other lawmakers for recognizing the role Fiserv plays in Wisconsin’s economy and choosing to make the company part of the discussions regarding economic development in the Badger State.

 

Statement on Fiserv Portion of Governor Walker’s Special Session from Rose Oswald Poels, President/CEO of the Wisconsin Bankers Association

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