"What Would a Fannie/Freddie Conservatorship Look Like?"

"If the rumor du jour is correct, and the Treasury is going to announce plans to inject $15 billion into Fannie and Freddie before trading starts on Monday, the idea of a conservatorship for the GSEs may be off the table. Nevertheless. Adam Levitin of Credit Slips discusses the legal aspects, and this knowledge is likely to prove useful at some point. The most interesting part, which is consistent with my impression, is that existing law is very thin."