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Fannie/Freddie Seek Financial Advisor to Help Them Exit Conservatorship

Posted To: MND NewsWire

Fannie Mae and Freddie Mac (the GSEs) have taken what each is calling an important step toward ending their 12 years of operating under conservatorship. Each has announced they are about to issue a request for proposals (RFP) to secure a financial advisor to facilitate that move. In a press release, Freddie Mac said the advisor selected will “advise the company on a range of issues, from capital considerations to the company’s business plan, and may ultimately play a role in any potential recapitalization transactions in the future” The GSE’s were put into conservatorship in August 2008 as losses mounted from defaulted mortgages they had guaranteed. The Treasury Department then gave them access to billions of dollars in operating capital in return for an equal amount of their senior preferred…(read more)

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