Many of ABA's members were harmed when the government, as part of its takeover of Fannie Mae and Freddie Mac, suspended dividends on GSE preferred shares and effectively wiped out the stocks' value. ABA provided Congress and regulators with information about the conservatorship's real-world effects on banks and lending. ABA also succeded in persuading policymakers to allow ordinary loss treatment for losses on Fannie and Freddie stock.

• Agencies Announce Decision on Impact of Tax Change on Indirect Investments in Fannie Mae and Freddie Mac Preferred Stock – 10/31/08
• Tax Benefits on Fannie/Freddie Preferred Stock Losses Recognized in Third-Quarter Call Reports – 10/30/08
• ABA NewsBytes Special Edition:
  Treasury Clarifies that Ordinary Loss Treatment Also Applies to ARPS, Subsidiaries –10/29/08
• Losses on Fannie and Freddie stock may be treated as ordinary losses for Q3 Call Report – 10/17/08 
  Proposed reduction in the risk weights for Fannie and Freddie debt from 20% to 10% – 10/09/08
  Incentives for Banks to Buy Fannie Mae and Freddie Mac Stock – 9/26/08
• ABA Letter to Congress Urging Tax Fixes Related to GSE Preferred Stock – 9/23/08
• ABA letter to regulators reporting banks' exposure to GSE preferred stock – 9/22/08
• ABA CEO alert to banks soliciting information on GSE preferred stock holdings – 9/19/08
• ABA letter to regulators recommending fixes to GSE Economic Stabilization Plan – 9/18/08
• FNMA FLHMC Letter to Eric Solomon – 9/17/08
• FNMA/FLHMC Preferred Stock Tax Treatment Possible Solutions – 9/15/08
• CEO Alert – 09/12/08
• Consumer Q&A: Fannie/Freddie Rescue – 9/11/08
• Frequently Asked Questions: FNMA/FHLMC – 9/10/08
  
• Additional Resources
  including: Overview of Prompt Corrective Action Rules – 9/17/08

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For more information, contact ABA's Bob Davis.