For Immediate Release
Contact:  (202) 589-2427

Housing Policy Council and Financial Services Roundtable Statement on Treasury Department Action on Fannie Mae and Freddie Mac

Washington, D.C.--September 7, 2008--The Financial Services Roundtable and its Housing Policy Council support the action taken today by the Treasury Department and the Federal Housing Finance Agency (FHFA) to stabilize Fannie Mae and Freddie Mac.  This strong and comprehensive action is necessary to enable the GSEs to provide liquidity to the housing market which is an essential component of the effort to stabilize and strengthen the economy.

The decision by FHFA and the Treasury Department to place the GSEs in conservatorship and to provide broad support for them as needed is a necessary step to enable the GSEs to provide liquidity to the housing market.  We have some concerns about the potential impact on preferred stockholders, but the overall action should strengthen the mortgage and housing markets.
    
We also applaud the appointment of Herbert Allison as CEO of Fannie Mae and David Moffett as CEO of Freddie Mac.   Mr. Allison and Mr. Moffett bring in depth knowledge and successful experience in financial services to these positions at a critical time.

The housing and mortgage markets are experiencing a challenging period at the present time and all participants in the market are working to ensure mortgage lending is available to Americans seeking financing for a home.   To enable the housing market to fully recover, it is very important in the immediate days ahead for the GSEs to continue to work with mortgage lenders to make home loans available to consumers.   The Treasury plan will enable the GSEs to meet their obligations and this will help homeowners, the mortgage and housing markets and the economy.

 Appropriate action has been taken to place the GSEs more directly under government supervision, while enabling them to continue to provide liquidity for the housing market.   We are optimistic that this action will help return the housing market to health more quickly.  There should be a serious and thorough debate on the long-term structure and role of Fannie Mae and Freddie Mac in the future.   

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The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer.  Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

Roundtable member companies provide fuel for America's economic engine, accounting directly for $66.1 trillion in managed assets, $1.1 trillion in revenue, and 2.5 million jobs.