FHFA hires adviser for privatizing Fannie and Freddie
admin | February 7, 2020
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The FHFA has tapped investment bank Houlihan Lokey as a financial adviser to guide the recapitalization process of Fannie Mae and Freddie Mac. Recapitalization is part of the roadmap being developed by the FHFA to end the conservatorship of the GSEs. The advisers are expected to consult on, and develop plans for: business and financial restructuring transactions, capital raising options, potential revisions to the preferred stock purchase agreements, evaluate financial projections and regulatory frameworks, among other analysis and contributions outlined in the statement of work. The FHFA may extend for up to 5 years with the total amount for services not to exceed $45 million. The Wall Street Journal article is here and the FHFA announcement is here. Source: WSJ, APS
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