NEW YORK (TheStreet) -- The Blackstone Group 's (BX) involvement with Fannie Mae (FNMA) and Freddie Mac (FMCC) appears deeper than previously known.
Blackstone sought to advise the Treasury Department on what to do with its controlling stake in the two government-sponsored home-loan companies in 2011, according to pitch documents provided to TheStreet by a public relations firm representing Investors Unite, a group of Fannie and Freddie shareholders. This information, which hasn't been previously reported, is noteworthy because in April Blackstone confirmed reports that it holds preferred shares in Fannie and Freddie.
Blackstone spokeswoman Christine Anderson refused to say whether Blackstone owned Fannie and Freddie preferred shares at the time the private equity firm made its June 13, 2011 pitch to Treasury along with New York law firm Skadden, Arps, Slate, Meagher & Flom. She said the issue was moot since it never won the assignment.
"Blackstone had no conflict with its investment in Fannie/Freddie because its Restructuring group was neither engaged by nor advising Treasury. Blackstone did no more than submit a generic and preliminary pitch based on publicly available information," she wrote to TheStreet via email Tuesday.
A Treasury spokesman also downplayed the meeting with Blackstone and Skadden.
"As part of the policy making process, Treasury routinely engages with key stakeholders, market participants and consumer advocates. Treasury did not issue a Request for Proposals, and no contract was awarded," he said Tuesday in an e-mailed statement. The spokesman asked that his name not be used.