Fanny

FHFA statement (via Ofheo's site) regarding putting Fanny and Freddie into conservatorship. [update: details from Treasuy]

Some interesting points:

• Herb Allison and David Moffett will be CEOs of Fannie and Freddie, respectively.
• All common and preferred stock will remain outstanding, but dividends will be eliminated.
• The U.S. government will obviously be guaranteeing debt.
• Political activities, including lobbying, will stop immediately.

Secretary Paulson will announce the details of the plan, but it appears to be a federally-backed backstop for Fannie and Freddie, allowing them to continue operation and hopefully reducing their borrowing costs.

Big stuff.