Also noting Politicos reporting on the subject, the watchdog groups say the moves increase the likelihood that MarketWatch and Politicos source(s) may have had incentive to leak information on GSE reform in the interest of helping private investors and, therefore, in violation of securities law.
Fannie and Freddie shares surged after that news was published
Among the close relationships listed in the letter: President Donald Trump and Treasury Secretary Steven Mnuchin both invested with John Paulsons hedge fund, Paulson & Co., prior to assuming their current roles. Paulson & Co. was one of several high-profile hedge funds that took up a position in preferred shares of Fannie Mae and Freddie Mac.
Paulson supported Trumps presidential campaign. He was also one of the investors that Mnuchin tapped in 2008 to purchase the failed lender IndyMac, and the acting FHFA regulator, Joseph Otting, who led the staff meeting on which MarketWatch reported, was the CEO of the successor, OneWest.