Monday, August 26, 2013 8:23:23 AM
How Can Fannie Mae and Freddie Mac Leave Conservatorship?
There are two ways that Fannie Mae and Freddie Mac could exit their conservatorships.
If they become financially viable, they could return to stockholder control.
(THEY ARE FINANCIALLY VIABLE. ACCORDING TO THIS REPORT CONSERVATORSHIP MUST END)
If they are unable to become financially viable, they could enter receivership.
There is no legal reason that one GSE could not go into receivership and the other GSE return to stockholder control, although this might present some policy questions about the desirability of having a monopoly GSE
PAGE 16
http://www.fas.org/sgp/crs/misc/R42760.pdf
GO FNMA/FMCC
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