August 10th, 2008 - Just thinking out loud
Wells Fargo has a market cap of about $100 billion; Freddie Mac’s is under $4 billion.
Wells Fargo has been well managed for years; Freddie, not so much.
Wells Fargo has long had a higher standalone credit rating than Freddie.
Might it make sense to allow a GSE to become a subsidiary of a bank? As I said, just thinking out loud…