Fannie, Freddie revamp plan unlikely this year, dividends in focusWASHINGTON (Reuters) - An overhaul of Fannie Mae and Freddie Mac is highly unlikely to make it into this year’s legislative calendar, Congressional staffers say, possibly shifting the new administration’s immediate focus to allowing the mortgage financing institutions’ to rebuild depleted capital. Fannie and Freddie stocks soared late last year when President Donald Trump’s pick for Treasury Secretary Steve Mnuchin said the companies that have been in government conservatorship since the 2008 financial crisis should be privatized. Hedge funds and other investors have been lobbying for the removal of government controls over the mortgage giants’ profits, which since 2012 have been transferred to the Treasury, and their eventual privatization. The shares dipped when Mnuchin seemed to backpedal on the privatization pledge during his January confirmation hearing and suffered another setback last month when a court rejected investors’ suit against the dividend transfers. Congressional staffers say the Senate Banking Committee has begun weekly bipartisan staff briefings on Freddie and Fannie reforms, but it is starting from scratch. The House Financial Services Committee is focused on other legislation, such as renewing the flood insurance program and rolling back parts of the Dodd-Frank financial reform, pushing the mortgage giants’ revamp down the to-do list, they say.  Instead, investors’ focus is shifting to how Mnuchin and Federal Housing Finance Agency Director Mel Watt, an Obama Administration holdover, will manage the dividends transfers.  Analysts expect the two institutions to make a full $10 billion dividend payment for the fourth quarter on March 31.  But investors will be looking for any indication from Watt or Mnuchin about whether they plan to allow the mortgage firms to retain profits later on and begin the slow recapitalization process. Though rebuilding an adequate capital buffer would take years - as long as two to three presidential administrations, according to one analyst - it would eventually allow Fannie and Freddie to leave government conservatorship, returning value to their investors.  Watt has warned the mortgage giants have a dangerously thin capital buffer. Mnuchin said during his confirmation hearing he favored finding a “bipartisan fix.” The two will likely wait for congressional inaction to become a de facto impasse before letting Freddie and Fannie hold on to their profits, analysts said, estimating a decision could be made two or three quarters out. “Mnuchin has been out there talking about a bipartisan agreement,” Heights Securities analyst Edwin Groshans told Reuters. “That process will have to play out until it in essence fails. When that process fails, that would open the opportunity for Mnuchin and Watts to act.” Tim Pagliara, an investor who founded Investors Unite, a coalition of more than 1,000 Fannie and Freddie investors, told Reuters he did not expect an imminent legislative fix and called the situation in Congress “fluid.” “The focus is going to continue to be on the court cases and what the administration is going to do – and what they’ve said they’re going to do,” Pagliara added.  President Donald Trump’s administration generally supports transferring government programs to the private sector. Trump donor John Paulson runs three hedge funds in which the president has invested and which held stakes in the mortgage institutions. Mnuchin, under the terms of a government ethics agreement, divested between $1 million and $2 million he had in Paulson’s funds. Fannie and Freddie provide stability to the U.S. housing market by buying mortgages and bundling them into government-backed securities. During the financial crisis, they received $187 billion in government aid and by now have repaid $265 billion via dividend payments to the Treasury. FHFA’s Watt has warned the payments have depleted the companies’ capital buffer and that by January 2018 they will have “no ability to weather quarterly losses.” Fannie was required by law to keep a minimum capital reserve of about $33 billion and Freddie $29 billion headed into the 2008 bailout, which suspended those requirements. Industry analysts, shareholders and advocacy groups - both conservative and liberal - all believe that the same 2008 bailout law gives Watt the authority to allow the companies to begin rebuilding capital, without waiting for Congress. politicsNews
annie freddie revamp plan unlikely year dividends focuswashington reuters an overhaul annie mae freddie mac highly unlikely make year legislative calendar congressional staffers say possibly shifting new administration immediate focus allowing mortgage financing institutions rebuild depleted capital annie freddie stocks soared late last year president donald trump pick treasury secretary steve mnuchin said companies government conservatorship since financial crisis privatized hedge funds investors lobbying removal government controls mortgage giants profits since transferred treasury eventual privatization the shares dipped mnuchin seemed backpedal privatization pledge january confirmation hearing suffered another setback last month court rejected investors suit dividend transfers congressional staffers say senate banking committee begun weekly bipartisan staff briefings freddie annie reforms starting scratch the house financial services committee focused legislation renewing flood insurance program rolling back parts financial reform pushing mortgage giants revamp list say instead investors focus shifting mnuchin federal housing finance agency director mel watt obama administration holder manage dividends transfers analysts expect two institutions make full billion dividend payment fourth quarter march but investors looking indication watt mnuchin whether plan allow mortgage firms retain profits later begin slow capitalization process though rebuilding adequate capital buffer would take years long two three presidential administrations according one analyst would eventually allow annie freddie leave government conservatorship returning value investors watt warned mortgage giants dangerously thin capital buffer mnuchin said confirmation hearing favored finding bipartisan the two likely wait congressional inaction become de facto impasse letting freddie annie hold profits analysts said estimating decision could made two three quarters mnuchin talking bipartisan agreement heights securities analyst edwin groshans told reuters that process play essence fails when process fails would open opportunity mnuchin watts tim pagliara investor founded investors unite coalition annie freddie investors told reuters expect imminent legislative fix called situation congress the focus going continue court cases administration going said going pagliara added president donald trump administration generally supports transferring government programs private sector trump donor john paulo runs three hedge funds president invested held stakes mortgage institutions mnuchin terms government ethics agreement divested million million paulo funds annie freddie provide stability housing market buying mortgages bundling securities during financial crisis received billion government aid repaid billion via dividend payments treasury ffa watt warned payments depleted companies capital buffer january ability weather quarterly annie required law keep minimum capital reserve billion freddie billion headed bailout suspended requirements industry analysts shareholders advocacy groups conservative liberal believe bailout law gives watt authority allow companies begin rebuilding capital without waiting congress politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Fannie, Freddie revamp plan unlikely this year, dividends in focusWASHINGTON (Reuters) - An overhaul of Fannie Mae and Freddie Mac is highly unlikely to make it into this year’s legislative calendar, Congressional staffers say, possibly shifting the new administration’s immediate focus to allowing the mortgage financing institutions’ to rebuild depleted capital. Fannie and Freddie stocks soared late last year when President Donald Trump’s pick for Treasury Secretary Steve Mnuchin said the companies that have been in government conservatorship since the 2008 financial crisis should be privatized. Hedge funds and other investors have been lobbying for the removal of government controls over the mortgage giants’ profits, which since 2012 have been transferred to the Treasury, and their eventual privatization. The shares dipped when Mnuchin seemed to backpedal on the privatization pledge during his January confirmation hearing and suffered another setback last month when a court rejected investors’ suit against the dividend transfers. Congressional staffers say the Senate Banking Committee has begun weekly bipartisan staff briefings on Freddie and Fannie reforms, but it is starting from scratch. The House Financial Services Committee is focused on other legislation, such as renewing the flood insurance program and rolling back parts of the Dodd-Frank financial reform, pushing the mortgage giants’ revamp down the to-do list, they say.  Instead, investors’ focus is shifting to how Mnuchin and Federal Housing Finance Agency Director Mel Watt, an Obama Administration holdover, will manage the dividends transfers.  Analysts expect the two institutions to make a full $10 billion dividend payment for the fourth quarter on March 31.  But investors will be looking for any indication from Watt or Mnuchin about whether they plan to allow the mortgage firms to retain profits later on and begin the slow recapitalization process. Though rebuilding an adequate capital buffer would take years - as long as two to three presidential administrations, according to one analyst - it would eventually allow Fannie and Freddie to leave government conservatorship, returning value to their investors.  Watt has warned the mortgage giants have a dangerously thin capital buffer. Mnuchin said during his confirmation hearing he favored finding a “bipartisan fix.” The two will likely wait for congressional inaction to become a de facto impasse before letting Freddie and Fannie hold on to their profits, analysts said, estimating a decision could be made two or three quarters out. “Mnuchin has been out there talking about a bipartisan agreement,” Heights Securities analyst Edwin Groshans told Reuters. “That process will have to play out until it in essence fails. When that process fails, that would open the opportunity for Mnuchin and Watts to act.” Tim Pagliara, an investor who founded Investors Unite, a coalition of more than 1,000 Fannie and Freddie investors, told Reuters he did not expect an imminent legislative fix and called the situation in Congress “fluid.” “The focus is going to continue to be on the court cases and what the administration is going to do – and what they’ve said they’re going to do,” Pagliara added.  President Donald Trump’s administration generally supports transferring government programs to the private sector. Trump donor John Paulson runs three hedge funds in which the president has invested and which held stakes in the mortgage institutions. Mnuchin, under the terms of a government ethics agreement, divested between $1 million and $2 million he had in Paulson’s funds. Fannie and Freddie provide stability to the U.S. housing market by buying mortgages and bundling them into government-backed securities. During the financial crisis, they received $187 billion in government aid and by now have repaid $265 billion via dividend payments to the Treasury. FHFA’s Watt has warned the payments have depleted the companies’ capital buffer and that by January 2018 they will have “no ability to weather quarterly losses.” Fannie was required by law to keep a minimum capital reserve of about $33 billion and Freddie $29 billion headed into the 2008 bailout, which suspended those requirements. Industry analysts, shareholders and advocacy groups - both conservative and liberal - all believe that the same 2008 bailout law gives Watt the authority to allow the companies to begin rebuilding capital, without waiting for Congress. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: annie freddie revamp plan unlikely year dividends focuswashington reuters an overhaul annie mae freddie mac highly unlikely make year legislative calendar congressional staffers say possibly shifting new administration immediate focus allowing mortgage financing institutions rebuild depleted capital annie freddie stocks soared late last year president donald trump pick treasury secretary steve mnuchin said companies government conservatorship since financial crisis privatized hedge funds investors lobbying removal government controls mortgage giants profits since transferred treasury eventual privatization the shares dipped mnuchin seemed backpedal privatization pledge january confirmation hearing suffered another setback last month court rejected investors suit dividend transfers congressional staffers say senate banking committee begun weekly bipartisan staff briefings freddie annie reforms starting scratch the house financial services committee focused legislation renewing flood insurance program rolling back parts financial reform pushing mortgage giants revamp list say instead investors focus shifting mnuchin federal housing finance agency director mel watt obama administration holder manage dividends transfers analysts expect two institutions make full billion dividend payment fourth quarter march but investors looking indication watt mnuchin whether plan allow mortgage firms retain profits later begin slow capitalization process though rebuilding adequate capital buffer would take years long two three presidential administrations according one analyst would eventually allow annie freddie leave government conservatorship returning value investors watt warned mortgage giants dangerously thin capital buffer mnuchin said confirmation hearing favored finding bipartisan the two likely wait congressional inaction become de facto impasse letting freddie annie hold profits analysts said estimating decision could made two three quarters mnuchin talking bipartisan agreement heights securities analyst edwin groshans told reuters that process play essence fails when process fails would open opportunity mnuchin watts tim pagliara investor founded investors unite coalition annie freddie investors told reuters expect imminent legislative fix called situation congress the focus going continue court cases administration going said going pagliara added president donald trump administration generally supports transferring government programs private sector trump donor john paulo runs three hedge funds president invested held stakes mortgage institutions mnuchin terms government ethics agreement divested million million paulo funds annie freddie provide stability housing market buying mortgages bundling securities during financial crisis received billion government aid repaid billion via dividend payments treasury ffa watt warned payments depleted companies capital buffer january ability weather quarterly annie required law keep minimum capital reserve billion freddie billion headed bailout suspended requirements industry analysts shareholders advocacy groups conservative liberal believe bailout law gives watt authority allow companies begin rebuilding capital without waiting congress politicsnews