Comment Letter in Response to the FDICs Interim Final Rule Implementing Certain Provisions of the Orderly Liquidation Authority (OLA),

March 28, 2011

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From: MFA, Richard Baker


Robert Feldman, FDIC

MFA filed a comment letter in response to the FDICs interim final rule implementing certain provisions of the orderly liquidation authority (OLA), including additional payments to similarly situated creditors, valuation of collateral, and estimation of contingent claims. In our letter, which supplemented two previous letters to the FDIC on these provisions of the OLA, we: (i) continued to express our concern with the distinction between short and long-term debt holders with respect to the possibility of additional payments being made to creditors; (ii) expressed support for the FDICs decision to amend its valuation rule to require fair valuation of all securities; (iii) encouraged the FDIC to publish for comment the policies and procedures it will use to determine fair value; and (iv) expressed our view that the FDIC should not designate a specific time at which it will estimate contingent claims. We further urged the FDIC to harmonize, to the greatest extent possible, rules under the OLA with the Bankruptcy Code and related rules.