The federal banking and thrift regulatory agencies have announced they are extending the applicability of their October 24, 2008 Interagency Statement on direct investments to certain indirect investments in Fannie Mae and Freddie Mac preferred stock.
The change, made in response to a newly issued federal tax revenue procedure, means that banks, bank holding companies and thrifts (banking organizations) are permitted to adjust their September 30, 2008 regulatory capital calculations for the tax effects from losses on direct and indirect investments in Fannie Mae and Freddie Mac preferred stock.
Banking organizations should follow the guidance in the appendix of the October 24, 2008 Interagency Statement for reporting the effect of the tax treatment change in the regulatory capital schedule of their September 30, 2008 regulatory reports.
See the press release for full details.
