Statement from Governor David A. Paterson on the U.S. Treasury Department's Rescue of Fannie Mae and Freddie Mac
September 8, 2008
“I support the U.S. Treasury Department’s actions to place both Fannie Mae and Freddie Mac into conservatorship. Fannie Mae and Freddie Mac have played a vital role in the mortgage market and I believe that these actions will help bring needed stability and ensure the continued availability of mortgage credit across the country.
“We are closely monitoring the impact the rescue package will have on state-chartered financial institutions and the availability and cost of mortgage credit in New York.
“The State’s Banking Department will continue its round-the-clock monitoring of the Government Sponsored Enterprise (GSE) common and preferred stock holdings of banks under its supervision and any adverse impact on bank capital.
“Based on current assessments, the majority of banks’ holdings of GSE common and preferred stocks represent relatively small percentages of their capital and it is anticipated that they can absorb any negative effects without an impact on depositors.
“The Treasury Department’s actions highlight the need to reassess our nation’s regulatory system to ensure that our financial institutions remain sound and that we protect consumers. We look forward to our continued participation in that effort.”