Fannie Mae & Freddie Mac Shareholders Look Doomed

Discussion in 'Wall St. News' started by oraclewizard77, Sep 6, 2008.

  1. oraclewizard77

    oraclewizard77 Moderator

    Fannie Mae & Freddie Mac Shareholders Look Doomed (FNM, FRE)
    By Dividend.com Staff
    September 6th, 2008

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    News is hitting the wires that Fannie Mae (FNM) and Freddie Mac (FRE) may be headed under federal control.

    In a plan that is being proposed, the company’s top brass and their boards would be replaced and shareholders would be virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt.

    The Bottom Line
    It appears that this potential plan will cost taxpayers tens of billions of dollars. The common and preferred shares of Fannie and Freddie would be reduced to little or nothing, and any losses on mortgages they own or guarantee could be paid by taxpayers. We have been warning about bottom-fishing in these particular names. Monday’s market open does not look good for either stock.

    Fannie Mae (FNM) is not a recommended dividend stock at this time, holding a Dividend.com rating of 1.9 out of 5 stars. Freddie Mac (FRE) is not a recommended dividend stock at this time, holding a Dividend.com rating of 1.9 out of 5 stars.
     
  2. S2007S

    S2007S

    and any losses on mortgages they own or guarantee could be paid by taxpayers.



    That pisses me off so damn much to see these problems being taken care of by the taxpayers expense. WTF!!!!
     
  3. Daal

    Daal

    Barney Frank just confirmed the 'rumors'