Moelis & Company announces release of Blueprint for Restoring Safety and Soundness to the GSEs.
EW YORK: Moelis & Company announced the release of the Blueprint for Restoring Safety and Soundness to the GSEs: One Year Later.
Moelis & Company is a leading global independent investment bank and financial advisor to certain non-litigating junior preferred shareholders of Fannie Mae and Freddie Mac. 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 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.