- On September 7, 2008, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac into conservatorship.
- The federal banking agencies issued a press release on September 7, 2008, stating the agencies will work with the limited number of institutions that have significant holdings of Fannie Mae or Freddie Mac equity securities in relation to their capital (see PR-78-2008).
- Institutions are reminded that investments in perpetual preferred stock and common stock with readily determinable fair values, if not held for trading purposes, should be reported as available-for-sale equity securities and that any net unrealized losses on these securities are deducted from regulatory capital.
- The FDIC is committed to a flexible supervisory approach and will work with institutions that are required to develop a Capital Restoration Plan under the Prompt Corrective Action guidelines. The FDIC will also be flexible in considering requests for waivers from brokered deposit restrictions for institutions that have become adequately capitalized.
- Minority Depository Institutions with significant holdings of Fannie Mae or Freddie Mac equity securities in relation to their capital are encouraged to request technical assistance from the FDIC, pursuant to Section 308 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
FDIC's "Statement on Investments in Fannie Mae and Freddie Mac Equity Securities"
William R. Baxter, Senior Examination Specialist, (202) 898-8514, firstname.lastname@example.org
Marc Steckel, Chief, Capital Markets Branch, (202)898-3618, email@example.com
Robert Storch, Chief Accountant, (202) 898-8906, firstname.lastname@example.org
FIL-93-2008 (PDF Help)
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
To receive FILs electronically, please visit
Paper copies of FDIC financial institution letters
may be obtained via the FDIC's Public Information
Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).