Posts filed under “Bailouts”

Fannie versus Freddie

I got an email from a Journalist asking why Fannie Mae (FNM) was trading at 71 cents (soon to be zero), while Freddie mac was trading at 80 cents (soon to be zero). 

My answer?

"The management at Freddie is vastly superior to that of Fannie . .  . also, from what I understand, the accounting standards at FRE are far more rigorous than those used by FNM."

<Sarcasm mode off>

Category: Bailouts

NPR Radio on Fannie, Freddie

Category: Bailouts, Media, Real Estate

How Finance Works, by Jim Flora

Category: Bailouts, Federal Reserve

Weekend Bailouts and Subsequent Market Reactions

Category: Bailouts, Markets, Psychology, Taxes and Policy

Comparing Fannie to Bear

Interesting video discussion by John Authers of the FT:

click for video:
Freddie_bear

via FT, September 8 2008,

Category: Bailouts, Trading, Video

Futures Up Triple Digits on Bailout

Category: Bailouts, Markets, Trading

Fannie & Freddie Weekend Wrap Up/Linkfest

So much for a relaxing weekend! We spilled plenty of pixels on Fannie (FNM) & Freddie (FRE)this weekend, as did lots of other folks. What follows is all of the relevant commentary I could scratch together:

Here’s TBP recap:

Treasury Takeover of GSEs: 10 Key Points

Fannie & Freddie Bailout:  In terms of Conservatorship, Management, Shareholders,  Mortgages, Legislation, Foreign Holders,  Financial sector, Politics, Timing, & GSE Insolvency

Here Comes the Half Trillion Dollar Fannie/Freddie Bailout!

All of the Treasury, Federal Reserve and FDIC news releases:

Treasury Department
http://treasury.gov/press/releases/hp1129.htm

Treasury Department Reports (PDFs):

 

Federal Reserve
http://www.federalreserve.gov/newsevents/press/bcreg/20080907a.htm

Chairman Bernanke
http://www.federalreserve.gov/newsevents/press/other/20080907a.htm

FDIC React to Takeover
http://www.fdic.gov/news/news/press/2008/pr08078.html

Fannie Mae & Freddie Mac Shareholder Ownership, via MSN:

Federal National Mortgage Association: Ownership

Freddie Mac: Ownership   

Video Coverage:

Treasury News Conference:

Treasury Unveils Takeover of Freddie and Fannie – Part 1

Treasury Unveils Takeover of Freddie and Fannie – Part 2

Treasury Unveils Takeover of Freddie and Fannie – Part 3

John Authers, FT

GSE Bazooka Fired  Ticker Forum, Karl Denninger (Video) 

 

Wall Street Research

Bringing Out the “Bazooka”  David A. Rosenberg, Merrill Lynch (PDF)   

First thoughts on the market impact of the Treasury’s GSE plan, Goldman Sachs (PDF)

Paulson Begins Gradual Wind-Down of GSEs within Conservatorship,  Institutional Risk Analyst      

Pershing Square Capital Letter to Treasury Department Regarding Fannie and Freddie

What the Mainstream Media had to say:

Monday, September 8, 2008

Mounting Woes Left Officials With Little Room to Maneuver WSJ
http://online.wsj.com/article/SB122083060663308415.html

Fannie, Freddie Credit-Default Swaps May Be Settled Bloomberg

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&

U.S. To Take Over Mortgage Giants Fannie, Freddie NPR Audio   
http://www.npr.org/templates/story/story.php?storyId=94365278&ft=1&f=1001

The Dilemma of Fannie and Freddie  NYT
http://www.nytimes.com/2008/09/08/business/08norris.html

In Crisis, Paulson’s Stunning Use of Federal Power  Washington Post

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/07/AR2008090702486.html

The How, Why and What Of Fannie-Freddie Plan  MORNING BRIEF 

http://online.wsj.com/article/SB122085653625309655.html

  


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Category: Bailouts, Credit, Financial Press, Weblogs

Treasury Takeover of GSEs: 10 Key Points

Category: Bailouts, Credit, Real Estate, Taxes and Policy

Treasury Announcements on Fannie/Freddie

Here are the official statements on the Fannie & Freddie bailouts:

Statement by Secretary Henry M. Paulson, Jr. on Treasury and Federal
Housing Finance Agency Action to Protect Financial Markets and Taxpayers:

Good morning. I’m joined here by Jim Lockhart, Director of the new independent regulator, the Federal Housing Finance Agency, FHFA.

In July, Congress granted the Treasury, the Federal Reserve and FHFA new authorities with respect to the GSEs, Fannie Mae and Freddie Mac. Since that time, we have closely monitored financial market and business conditions and have analyzed in great detail the current financial condition of the GSEs – including the ability of the GSEs to weather a variety of market conditions going forward. As a result of this work, we have determined that it is necessary to take action. (continued after jump)

-Treasury Department, September 7, 2008
http://treasury.gov/press/releases/hp1129.htm

Treasury Department Reports:

FHFA Director Lockhart Remarks on Housing GSE Actions
Fact Sheet: FHFA Conservatorship
Fact Sheet: Treasury Preferred Stock Purchase Agreement
Fact Sheet: Treasury MBS Purchase Program
Fact Sheet: Treasury GSE Credit Facility

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Category: Bailouts, Credit, Federal Reserve, Real Estate, Taxes and Policy

Treasury: Bailout Details Sunday 11 AM

Category: Bailouts, Credit, Real Estate, Taxes and Policy