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Highlights: 
 

• On September 7, 2008, the Federal Housing Finance Agency placed Fannie Mae and Freddie Mac into conservatorship.
• The federal banking agencies issued a press release on September 7, 2008, stating the agencies will work with the limited number of institutions that have significant holdings of Fannie Mae or Freddie Mac equity securities in relation to their capital (see ).
• Institutions are reminded that investments in perpetual preferred stock and common stock with readily determinable fair values, if not held for trading purposes, should be reported as available-for-sale equity securities and that any net unrealized losses on these securities are deducted from regulatory capital.
• The �౦��Ϸ���� is committed to a flexible supervisory approach and will work with institutions that are required to develop a Capital Restoration Plan under the Prompt Corrective Action guidelines. The �౦��Ϸ���� will also be flexible in considering requests for waivers from brokered deposit restrictions for institutions that have become adequately capitalized.
• Minority Depository Institutions with significant holdings of Fannie Mae or Freddie Mac equity securities in relation to their capital are encouraged to request technical assistance from the �౦��Ϸ����, pursuant to Section 308 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

Distribution: 
�౦��Ϸ����-Supervised Banks (Commercial and Savings)

Suggested Routing: 
Chief Executive Officer 
Chief Financial Officer

Note: 
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2008/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of �౦��Ϸ���� financial institution letters may be obtained via the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).