today the difference pretty big, freddy down 10% fannie only 6%... i reckon especially in pre market there are scalpers that trade them against each other... do you think the government would make any difference between them, i think whatever they decide, they will apply it on both of them... as i writ fannie went to almost flat while freddy still 6% down
wasnt going to trade all of august , but i had a FNM nightmare disaster dream..and then i saw your post and bought...peace yeah its gamblin' ...so
nice cubano. my realized profit some 1200$ as well... (including the 500$ loss on the first entry pre market). 2000 pieces at 2.776 left now... (unrealized 1000$) might let them run till end of day..
Freddie's capital surplus over the mimimum capital is $2 billions in Q2. In Q1 Freedie had a capital surplus of $6 billions.
It's kind of interesting to see FRE and FNM's price action mimic LEHs yesterday while LEH is is similar to FRE and FNM.
NEW YORK, Aug 21 (Reuters) - Executives at U.S. mortgage finance company Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) are sounding out private-equity and other investors about buying its shares, although the effort faces a major hurdle, the Wall Street Journal reported on Thursday. "Senior management has been talking with a wide array of possible investors this week," the report quoted Freddie Mac spokesman David Palombi as saying. The report said the search for investors is challenged by fears that any investment in Freddie or its main rival, Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz), will be lost if the U.S. Treasury bails out the companies through a purchase of equity in them. ***** If FRE hadn't played the "we'll raise equity when market conditions improve" game in recent months, then they would have been able to raise equity at higher prices, and possibility without investors worrying about a bailout. As a result of their actions, it's highly likely that a $5.5 billion (or more) capital raise will be at a price well below $3.
Does anyone have solid data on how much preferred stock fnm fre have and how widely owned it is? http://www.bloomberg.com/apps/news?pid=20601087&sid=aM7PbcXSYeIU&refer=home Its possible that they will get a bailout if there is some kind systemic risk or imminent bank failures. thats not good for the equity though