NEW YORK--(BUSINESS WIRE)--
Moelis & Company (NYSE: MC), a leading global independent investment
bank and financial advisor to certain non-litigating junior preferred
shareholders of Fannie Mae and Freddie Mac, today announced the release
of the Blueprint
for Restoring Safety and Soundness to the GSEs: One Year Later.
The original Safety and Soundness Blueprint laid out the means and
process by which to rebuild capital at Fannie and Freddie as
shareholder‐owned single‐purpose insurers, refocused on their core
conventional mortgage guarantee business, de‐levered, and held to the
highest regulatory and capital standards. One year later, on the 10 year
anniversary of Fannie and Freddie being placed in conservatorship, the
Safety and Soundness Blueprint continues to provide the only
mathematically credible, detailed, and achievable path forward for the
GSEs.
The updated Safety and Soundness Blueprint contains the following
developments since the Blueprint’s original release in June 2017:
-
The indicative valuation of the Treasury Department’s warrants has
substantially increased, based on lower tax rates from the Tax Cuts
and Jobs Act of 2017 and better-than-expected credit performance at
Fannie and Freddie.
-
The government has been completely repaid by both Fannie and Freddie,
with returns now exceeding the original 10% annualized rate of return
established at the start of the conservatorship.
-
There has been increasing convergence in the views of industry and
other stakeholders that the Administration should have the GSEs start
building capital and must lead efforts to remove the enterprises from
conservatorship.
-
FHFA has developed, and released for public comment, its new
post-conservatorship regulatory capital framework for the GSEs.
To view the full Blueprint for Restoring Safety and Soundness to the
GSEs: One Year Later, visit www.gsesafetyandsoundness.com.
-ends-
About Moelis & Company
Moelis & Company is a leading global independent investment bank that
provides innovative strategic advice and solutions to a diverse client
base, including corporations, governments and financial sponsors. The
Firm assists its clients in achieving their strategic goals by offering
comprehensive integrated financial advisory services across all major
industry sectors. Moelis & Company’s experienced professionals advise
clients on their most critical decisions, including mergers and
acquisitions, recapitalizations and restructurings, capital markets
transactions, and other corporate finance matters. The Firm serves its
clients from 19 geographic locations in North and South America, Europe,
the Middle East, Asia and Australia. For further information, please
visit: www.moelis.com
or follow us on Twitter @Moelis.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181109005066/en/
Media:
Moelis & Company
Ari Cohen, + 1-212-883-4008
M:
+ 1-917-943-8271
ari.cohen@moelis.com
Source: Moelis & Company