“If the circumstances present itself to where we have to wipe out the shareholders, we will,” said Calabria, referring to owners of stock in the two government-sponsored enterprises that support much of the U.S. housing finance market.
Share prices in Fannie Mae and Freddie Mac have tripled year-to-date as Wall Street welcomes the Trump administration’s proposal to bring the companies out of government conservatorship, where they have been since the Great Recession.