On the recordDecember 18, 2015
I thank the Majority Leader. The FHFA and Treasury Department could have placed the GSEs into receivership if the intent was to liquidate them. The purpose of a conservatorship is to preserve and conserve the assets of the entities in conservatorship until they are in a safe and solvent condition as determined by their regulator. There being no objection, the material was ordered to be printed in the Record, as follows: Department of the Treasury, Washington, DC, December 17, 2015. Hon. Harry Reid, Democratic Leader, U.S. Senate, Washington, DC. Dear Mr. Leader: In response to your request for our view, the Treasury Department interprets the language of Section 702 of Division O of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2016, to mean that subsection (b) imposes a prohibition that is binding until January 1, 2018. It would not be binding after that date. Sincerely, Anne Wall, Assistant Secretary for Legislative Affairs. Title IX
