* WASHINGTON (8/1/08)--The Federal Housing Finance Agency (FHFA), the new agency that will regulate Fannie Mae, Freddie Mac and the Federal Home Loan Banks, has been established as a result of a housing bill President Bush signed into law this week. Aside from watching over the government-sponsored enterprises, the agency has to create standards to govern internal audit systems, internal controls, interest-rate-risk management, market risk management and liquidity adequacy (American Banker
July 31). The Office of Federal Housing Enterprise Oversight (OFHEO), which is currently Fannie and Freddie’s regulator, will continue for one year with limited capacity. OFHEO and the Finance Board will transfer their employees to the FHFA. James Lockhart, former OFHEO director, will head the FHFA ... * WASHINGTON (8/1/08)--The Securities and Exchange Commission extended the restrictions on short sales for 17 Wall Street firms late Tuesday (American Banker
July 31). The restrictions will continue through Aug. 12, giving staff 10 days to review data on the restrictions’ effect. The agency said the order will not be extended after Aug. 12 ... * WASHINGTON (8/1/08)--The Federal Deposit Insurance Corp. (FDIC) has issued a financial institution letter
with final guidance on the Supervisory Review Process of Capital Adequacy (Pillar 2) under the Basel II Advanced Capital Framework. The guidance takes effect Sept. 2 ...