Financial Update (Fourth Quarter 2008)

Banking Agencies Issue Statement on Institutions' Exposure to Fannie, Freddie
Fannie Mae Freddie Mac graphic

The Federal Reserve Board and other federal banking agencies recently issued a statement concerning the exposures of banks and thrifts to Fannie Mae and Freddie Mac. The agencies stated that they believe a limited number of smaller institutions have holdings that are significant compared to their capital.

The Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Office of Thrift Supervision are prepared to work with exposed institutions to develop capital-restoration plans that follow the capital regulation and prompt corrective action provisions of the Federal Deposit Insurance Corporation Improvement Act.

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October 17, 2008