Fnm Fre

Discussion in 'Stocks' started by Daal, Jul 23, 2008.

  1. Daal

    Daal

    The bank mentioned on the article Sovereign bancorp has $8b in stockholder equity so they can take a $600m hit if the pf became worthless. another $35b in losses to the markets if the PF became worthless, considering the system took $500b so far, that doesnt seem to be big enough to demand a bailout. unless a few regionals would go under
     
    #91     Aug 22, 2008
  2. m22au

    m22au

    Daal - thanks for the post with the Bloomberg article link.

    Here is a portfolio of the companies mentioned in the Bloomberg and Marketwatch articles:

    http://finance.yahoo.com/q?s=MTB,SOV,FTBK,MBHI,CATY&d=s

    It looks like MBHI may be the most exposed, with $67 million holding (source - Bloomberg) versus a $128 million market cap.

    http://www.marketwatch.com/News/Story/Story.aspx?guid={A80BA738-16A4-4A2F-9287-AF3756D337FA}&siteid=yhoof2

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aM7PbcXSYeIU&refer=home
     
    #92     Aug 22, 2008
  3. m22au

    m22au

    Looks like your patience in waiting for a bounce has played out well - including premarket gains FNM has bounced about 45% and FRE about 50%

     
    #93     Aug 22, 2008
  4. Cutten

    Cutten

  5. GTS

    GTS

    #95     Aug 22, 2008
  6. Cutten

    Cutten

    This is the same market that priced them at $60 less than a year ago.

    I know who I would back in this "disagreement" on pricing.
     
    #96     Aug 22, 2008
  7. m22au

    m22au

    #97     Aug 22, 2008
  8. S2007S

    S2007S

    I guess the financials are ignoring the huge drops in FNM and FRE stock prices today.....
     
    #98     Aug 22, 2008
  9. Illum

    Illum

    I jumped in and bought some fre trash.

    Treasury says it wants it to remain private. They will have to paint the tape somehow. Long term they prolly will fail, but if this is what they want, 3 a share wont cut it. I may get a noob lesson, but I jumped in.
     
    #99     Aug 22, 2008
  10. m22au

    m22au

    http://www.nytimes.com/2008/08/23/business/23fannie.html

    Snippet:

    Anxiously awaiting a move by the Treasury Department and spurned by large investment firms, Freddie Mac and Fannie Mae find themselves unable to raise capital and with little ability to maneuver.

    Treasury officials have reviewed multiple plans for intervention, according to people who have spoken to top Treasury officials. But they have not identified a set of triggers that will compel a government bailout. Nor have they indicated to Freddie Mac or Fannie Mae executives when a bailout may occur or what form it may take.

    As a result, investors are telling Freddie Mac and Fannie Mae that they remain unwilling to purchase new shares in the firms.

    “We’re in a Catch 22,” said an executive with one of the mortgage firms who was not authorized to speak to the media. “As long as there is uncertainty over Treasury’s plan, we can’t raise money, and as long as we can’t raise money, there’s going to be more and more speculation about Treasury’s plan.”

    In recent days, Freddie Mac has met with potential investors at the law offices of Davis, Polk & Wardwell. But the company has been told by several private equity giants — the Texas Pacific Group, Kohlberg Kravis Roberts & Company, the Carlyle Group and the Blackstone Group — that those investors are unwilling to purchase any type of new stock in the company until it is clear what steps the Treasury Department may take to assist the ailing firm.


    “You would have to be insane to invest in these companies right now, and we’ve basically told them that,” said an investment professional with one firm that was approached by Freddie Mac, but who is not authorized to speak to the media. “When Treasury comes in, they are guaranteed to get a better deal than us, which would push down the value of our investment. So why would we ever invest before we know what Treasury is going to do?
     
    #100     Aug 23, 2008