FHFA PUTS FANNIE, FREDDIE INTO CONSERVATORSHIP

Monday, September 8, 2008 - 7:30AM

Yesterday, Treasury Secretary Henry Paulson and Jim Lockhart, director of the Federal Housing Finance Agency (FHFA) announced that government sponsored entities (GSEs) Fannie Mae and Freddie Mac would be put into separate conservatorships until they are stabilized. In July, the Housing and Economic Recovery Act of 2008 granted the Treasury, the Federal Reserve and FHFA new authorities with respect to Fannie Mae and Freddie Mac. Paulson said yesterday that based on what they had learned about these institutions and their financial condition over the last four weeks, officials at the FHFA, Treasury Department and Federal Reserve decided that the conservatorship was necessary and appropriate.

Tune in to tomorrow’s Tax Credit Tuesday podcast to hear more about this historic action.

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