Under this commitment, Freddie Mac will hold sufficient liquid, high-quality assets to withstand three months without access to debt market funding. Freddie Mac made the six commitments last October in a joint announcement with House Financial Services Subcommittee Chairman Richard Baker, Representative Paul Kanjorski and other Committee members.
Liquidity is the lifeblood of any financial institution and of any financial market.
Freddie Mac's ability to withstand three months without access to debt markets and still meet our financial commitments is an extraordinary indication of our financial strength and liquidity. I doubt many other financial institutions could meet this standard. The liquidity commitment is designed to enable Freddie Mac to meet its financial obligations for at least three months, regardless of disruptions in the capital markets. As part of the liquidity commitment, Freddie Mac will meet the 14 principles for sound management of liquidity recommended by the Basel Committee on Banking Supervision. Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing.