For all the Agency and Company readers- you may not have read the fine print on the conservatorship from the Frannie and Feddie debacle last week. Afterall, its not that often that we get talking about these things.

So what is it? Essentially, it is a mechanism for the gorvernment to take control of an organization with the intent of continuing the run it - often times in preparation for a sale. This contrasts to a receivorship, which is when the appointed entity is conducting an orderly liquidation.

Granted, Freddie and Frannie are somewhat different, in that they were quasi-government institutions to begin with. Perhaps they are not intended for a "sale."

That said, AIG is an entirely different animal. The fact that conservatorship was floated rather than receivership is interesting - we think that it again highlights systemic risk: the ability to simply shutter the company and sell off assets is not a feasible maneuver.

More to follow.