Treasury just hired MS to investigate funding for Freddie and Fannie
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Treasury hires Morgan Stanley to analyze Fannie, Freddie
By Greg Robb
Last update: 5:00 p.m. EDT Aug. 5, 2008
WASHINGTON (MarketWatch) -- The Treasury Department announced Tuesday that it has hired Morgan Stanley to analyze Fannie Mae and Freddie Mac. In a short statement, the department said Morgan's services would include "a sensitivity analysis on the financial profile of selected financial services firms, and assessment of appropriate capital structures. The firm will also conduct a broader examination of the two mortgage giant's relationship with the broader capital markets." A Treasury spokeswoman said the agency sought Morgan's expertise because the agency is in uncharted territory regarding the two firms. Congress recently gave Treasury the authority to provide a capital backstop to Fannie and Freddie if they do not have adequate capital to meet their obligations.
By Greg Robb
Last update: 5:00 p.m. EDT Aug. 5, 2008
WASHINGTON (MarketWatch) -- The Treasury Department announced Tuesday that it has hired Morgan Stanley to analyze Fannie Mae and Freddie Mac. In a short statement, the department said Morgan's services would include "a sensitivity analysis on the financial profile of selected financial services firms, and assessment of appropriate capital structures. The firm will also conduct a broader examination of the two mortgage giant's relationship with the broader capital markets." A Treasury spokeswoman said the agency sought Morgan's expertise because the agency is in uncharted territory regarding the two firms. Congress recently gave Treasury the authority to provide a capital backstop to Fannie and Freddie if they do not have adequate capital to meet their obligations.
