Now we get real prices for swaps from Fannie and Freddie.
Watch the investment banks howl, as this source of profit and influence disappears.
* * * * * J B K * * * * *
San Francisco
The Federal Housing Finance Agency, which oversees the government-owned mortgage giants, expects them to start using a clearinghouse to trade the swaps by year's end, according to The Journal. The impending change away from private "over-the-counter" contracts has generated behind-the-scenes meetings among officials at Fannie and Freddie, the banks that now command their business and the exchanges that want it.
