Thacher Proffitt Publishes “Fannie Mae and Freddie Mac Conservatorship and Liquidity Support”
NEW YORK--(BUSINESS WIRE)--Thacher Proffitt & Wood LLP announced today the publication of “Fannie Mae and Freddie Mac Conservatorship and Liquidity Support,” authored by Stephen F.J. Ornstein, Matthew S. Yoon, David A. Tallman, and John P. Holahan.
On September 7, 2008, the Federal Housing Finance Authority (the “FHFA”), the primary regulator of Fannie Mae and Freddie Mac, the two government sponsored housing enterprises (“GSEs”) took the extraordinary step of placing the GSEs in federal conservatorship. The FHFA will act as the conservator and will have the indefinite authority to control and oversee the companies in order to return them to a sound and solvent condition. The conservatorship is intended to restore confidence in the GSEs, enhance their ability to fulfill their housing missions, and help calm the instability in the U.S. financial markets. Existing contracts that counterparties may have with Fannie Mae and Freddie Mac will remain in effect. United States federal law will override any counterparty’s right to accelerate, terminate, liquidate or net such contracts (including any “qualified financial contracts”) solely by reason of the appointment of the conservator.
