Wednesday, March 19, 2008

OFHEO to announce reduction in Fannie & Freddie capital requirements

From the WSJ: Fannie, Freddie Regulator Plans Capital Announcement

Ofheo for the past several years has required Fannie and Freddie to hold 30% more capital than their usual minimum while they have worked to resolve lapses in their accounting and internal risk controls, a process now viewed as largely complete. Ofheo is expected to reduce that capital "surcharge" initially to 20%.

The move should reduce Freddie's capital requirement by about $2.6 billion and Fannie's by $3.2 billion.
It wasn't that long ago when Fannie and Freddie were the problem, now they are the solution. The press conference is Wednesday at 9 AM.

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