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Money Talks from The Economist

Money talks: Fannie and Freddie move house

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 10 September 2019

⏱️ 23 minutes

🧾️ Download transcript

Summary

The US Treasury plans to privatise Fannie Mae and Freddie Mac, which prop up most of the country’s mortgage finance. How will this affect the US mortgage market? Also, despite legislation aimed at blocking a no-deal Brexit, Britain could still leave the EU without a deal. The Bank of England is weighing up its options for how to deal with the consequences. And, how important are coaches to sporting success? Simon Long hosts

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Transcript

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0:00.0

They're not authors, but they help you shape your financial story.

0:04.0

They're not an airline, but they connect global businesses across nearly 160 local markets.

0:10.0

They're not interpreters that they listen to and understand their client's needs.

0:14.8

With global expertise and over two centuries of experience, Citi provides tools, insights and

0:20.8

guidance that helps clients thrive.

0:23.0

They're not just any bank, they are city.

0:26.0

Learn more at city.com slash we are city. Hello and welcome to Money Talks. I'm Simon Long, an editor here at The

0:39.7

Economist and coming up on today's show. What impact might a no-deal Brexit have on interest rates in Britain?

0:47.0

The Bank of England has stressed that in fact in the event of a no-deal Brexit, the monetary policy could get looser, but it could actually get tighter.

0:55.0

And in sport, can coaching make all the difference?

0:58.0

Up to 30% of the variation of the team's performance can be ascribed to coaches. But first, the US Treasury has announced plans to re-privatize Fannie Mae and Freddie Mac.

1:20.0

The two companies have been in the form of government control since their record-breaking bailout in September 2008.

1:27.0

The plan for their futures from Stephen Nucin, the US Treasury Secretary,

1:31.0

calls Fannie and Freddie's status the last unfinished business of the financial

1:35.7

crisis.

1:36.7

You're right, they've been in conservatorship for too long and we want to make sure they're not

1:42.2

in conservatorship on a permanent basis.

1:45.0

The two so-called government-sponsored enterprises still pop up most of the country's mortgage

1:50.2

finance. In fact more than five5 trillion of housing-related securities sit on their

1:55.3

balance sheets.

1:56.8

That's nearly half the total outstanding in America.

2:00.2

I'm joined by Alice Fullwood, the economist's American Finance Correspondent.

...

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