OFHEO: GSEs Adequately Capitalized

The Office of Federal Housing Enterprise Oversight classified Fannie Mae and Freddie Mac as "adequately capitalized" on June 30.OFHEO Director James Lockhart noted that both Fannie Mae and Freddie Mac are required to maintain capital that is at least 30% above the statutory minimum, and he suggested that the excess capital requirement will not be removed any time soon. "Operational weaknesses involving accounting systems, internal controls, and risk management continue at both enterprises," Mr. Lockhart said. As of March 31, Fannie Mae exceeded its OFHEO-directed capital requirement by $3.013 billion, and Freddie Mac exceeded its requirement by $4.015 billion, OFHEO said. The two government-sponsored enterprises can be found online at http://www.fanniemae.com and http://www.freddiemac.com, and OFHEO can be found at http://www.ofheo.gov.