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.
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.
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.
The agencies propose that the 10 percent risk weight would apply to these exposures for the term of the agreements.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Risk-Based Capital Rules
12 CFR Part 325
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)
Nancy Hunt, Senior Policy Analyst, at firstname.lastname@example.org or (202) 898-6643
Ryan Sheller, Capital Markets Specialist, at email@example.com or (202) 898-6614
FIL-113-2008 - PDF (PDF Help)
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2008/index.html.
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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).