Highlights:
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In light of the financial support that the U.S. Department of Treasury has committed to Fannie Mae and Freddie Mac under the Government- Sponsored Enterprise Credit Facility and senior preferred stock purchase agreements (agreements), the agencies believe that a lower risk weight is appropriate for claims on these entities.
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In the attached NPR, the agencies propose to allow banking organizations to assign a 10 percent risk weight to claims on or guaranteed by Fannie Mae and Freddie Mac.
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Under the NPR, claims eligible for a 10 percent risk weight include all credit exposures, such as senior and subordinated debt and counterparty credit risk exposures, but do not include preferred or common stock.
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The agencies propose that the 10 percent risk weight would apply to these exposures for the term of the agreements.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Related Topics:
Risk-Based Capital Rules
12 CFR Part 325
Attachment:
Notice of Proposed Rulemaking on Minimum Capital Ratios; Capital Adequacy Guidelines; Capital Maintenance; Capital: Treatment of Certain Claims on, or Guaranteed by, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) - PDF (PDF Help)
Contact:
Nancy Hunt, Senior Policy Analyst, at nhunt@fdic.gov or (202) 898-6643
Ryan Sheller, Capital Markets Specialist, at rsheller@fdic.gov or (202) 898-6614
Printable Format:
FIL-113-2008 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).
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