Indymac shares, from $50 to 28 cents; why would Freddie/Fannie be different?

Discussion in 'Stocks' started by crgarcia, Jul 13, 2008.

  1. At least Indymac is FDIC protected.
    Freddie and Fannie are NOT.

    Altough their mortgages are backed by the gov't.
  2. freddie peddles higher quality as opposed to alt-a with indymac

    Does freddie even have depositors? They issue loans backed by prime mortgages as their main revenue generator AFAIK. The risk I see with freddie is that they won't be able to roll their loans and get squeezed for cash.
  3. trendy


    Apples and oranges. IndyMac was a bank that took deposits, paid interests on those deposits and made loans, a lot of them bad apparently. Indymac depositors were largely protected by FDIC. Its shareholders are not. Fannie and Freddie do not accept deposits. They make mortgage loans and guarantee mortgage loans. IndyMac's demise was hastened by a run on the bank by depositors. That scenario is not possible with Fannie and Freddie. What is possible is that buyers of Fannie and Freddie's mortgage back securities lose confidence in either these entities being able to remain solvent, or that the US Gov't. would ultimately cough up enough cash to keep or make them solvent. How FRE and FNM shareholders would make out if these entities go on life support remains to be seen.
  4. Gov't should take a small stake in FRN/FNM to make the guarantee explicit, IMO...warrants or preferred
  5. Agreed.
    The OP clearly hasn't the slightest clue as to the differences between an FDIC insured bank that had a "run" on it, and Fannie and Freddie.
  6. not 28 cents,
    try ten cents,
    and less than that when the stock trades again on Tuesday
  7. Probably big gap up tomorrow. Paulson just saved FRN/FNM shareholders (and short put traders:cool: )
  8. IMB gap up? IMB is completely finished, the FDIC has moved in, it's completely gone.
    FNM/FRE are saved.
  9. IMB not gapping (well, maybe a huge gap down)... I was referring to FRE/FNM
  10. wucah


    What will happen to IMB share? I am holding 1000 long from friday? Just want to get out as its holding capital.

    What will happen now? The stock seemed to dissapear from yahoo or marketwatch!
    #10     Jul 15, 2008