FROM THE OFFICE OF PUBLIC AFFAIRS

"I applaud today's announcement of Fannie Mae and Freddie Mac's self-initiated compliance with the corporate disclosure requirements of the Securities Exchange Act of 1934. The President has called on corporate leaders across the nation to examine their disclosure practices and ensure that they are doing everything they can to provide investors with accurate, timely and useful information consistent with best practices. Frank Raines and Leland Brendsel are stepping up to that challenge.

"As a result of their actions, the Administration is not prepared to support repeal of the GSEs exemption from the Securities Act of 1933 and the Office of Federal Housing Enterprise Oversight is not pursuing a securities registration regime for Fannie Mae and Freddie Mac.

"The Treasury, the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight will be conducting a joint study of disclosure regarding mortgage-backed securities with a view to ensuring that investors in all mortgage-backed securities are provided with the information that they should have."