When Will The Treasury Announce Plans For Fannie and Freddie?

Posted by John Carney, Aug 22, 2008, 1:00pm

Yesterday's frantic activity at the Treasury produced no news but there is widespread speculation that an announcement about Fannie Mae and Freddie Mac will be made in the near future. What do you think?

After the jump, take the reader poll.


0Recommend this! 25Comments
Posted in: Reader Poll
Tags: Fannie Mae, Freddie Mac

Comments

1

Posted by guest , Aug 22, 2008 1:12PM

FACE!

2

Posted by guest , Aug 22, 2008 1:25PM

Whitish-yellow in color, it is a stable emulsion formed from the oil and the yolks and is generally flavored with mustard, lemon juice or vinegar, salt.

3

Posted by guest , Aug 22, 2008 1:58PM

Why is buying these stocks?

The Pref is downgraded to one notch above junk...these things are toast.

4

Posted by guest , Aug 22, 2008 2:01PM

Think about the typical retail day trader. The name is in the news, the absolute price is very low, a few clicks on etrade and you own thousands of shares for very little money, which you hope will go up a bit. Not my strategy, but I can see how it can seem smart.

5

Posted by guest , Aug 22, 2008 2:03PM

150m in volume. That is a lot of etrade clicks.

6

Posted by guest , Aug 22, 2008 2:14PM

Citigroup Inc. (C), in its latest internal reorganization, plans to overhaul
the structure of the capital-markets business within its investment bank,
according to a person familiar with the matter.
Under the new structure, the capital-markets group, which includes
Citigroup's equity and fixed-income traders, is expected to be organized
geographically, instead of along product lines, the person said. The change
could be announced internally next week. In March, Citigroup Chief Executive
Vikram Pandit - seeking to get a handle on the sprawling company that he
inherited in December - set up a "matrix"-style organizational structure
that featured regional CEOs as well as New York-based business heads. Since
then, various units around the word - most recently, Citigroup's
Asia-Pacific business - have adopted similar structures.

7

Posted by gdm , Aug 22, 2008 2:58PM

I don't think Bush has the stones at this point to pull the trigger. He's going to close his eyes and hope they can kick the can down the line to the next guy.

8

Posted by guest , Aug 22, 2008 3:14PM

An announcement will be made Sunday afternoon a few hours before Asian trading. FRE + FNM common and prf'd will get ZERO. Jap bastards will be diving onto their swords.

9

Posted by guest , Aug 22, 2008 3:14PM

An announcement will be made Sunday afternoon a few hours before Asian trading. FRE + FNM common and prf'd will get ZERO. Jap bastards will be diving onto their swords.

10

Posted by guest , Aug 22, 2008 3:17PM

@7 I agree...they've had such great success creating and perpetuating facades through the media that they probably think they can out fox the market for another year.

Too bad the average homeowner is paying 1% more on their loan because of uncertainty this creates in the market. Would be nice to let folks use that $100-200 a month on something else.

11

Posted by guest , Aug 22, 2008 3:30PM

to save the banking system, they have to maintain the pfd coupon...dilute the holders, issue a convert pfd with a 14% cpn...this will allow the regionals to take a small hickey with an impairment but eliminates the massive loss of capital at small regional banks....no way Paulson wants to see a run on the banks

12

Posted by guest , Aug 22, 2008 3:30PM

to save the banking system, they have to maintain the pfd coupon...dilute the holders, issue a convert pfd with a 14% cpn...this will allow the regionals to take a small hickey with an impairment but eliminates the massive loss of capital at small regional banks....no way Paulson wants to see a run on the banks

13

Posted by guest , Aug 22, 2008 3:37PM

@11 (and 12 too)

I'm sure they are going through this analysis right now to figure out what impact of wiping pref is. I would be VERY surprised if everyone doesn't get a little "think about the risk next time" hickey, including the senior/sub debt.

I know I'm not being very original on this but since it hasn't yet been said on this post:

It is ***NEVER*** to late to short FRE common.

14

Posted by guest , Aug 22, 2008 3:46PM

Sr and sub will not be touched...dont upset the foreign buyer....if they do anything besides completely guarantee the sr & sub, we will truly find out what deleveraging means.

15

Posted by guest , Aug 22, 2008 4:18PM

what's with the double postings? patience, people!

16

Posted by guest , Aug 22, 2008 4:19PM

what's with the double postings? patience, people!

17

Posted by guest , Aug 22, 2008 4:31PM

How can they do anything over the weekend when everyone is in Jackson Hole?? My bet is it won't be for a few more weeks.

18

Posted by Finnegan , Aug 23, 2008 5:56AM

Agree with 14 completely. I thought it was interesting that one of Russia's investment officials came out (during out bold talk on Georgia) saying, "We will not increase or decrease our exposure to the GSE's).

It just seemed and odd, and slightly ominous thing to say, the unstated implication being that they could dump it all. But it's true. Tons of foreign buyers hold our junk, and finance our system, and we don't want to piss any of them off for fear of getting our pants ripped off.

19

Posted by Finnegan , Aug 23, 2008 6:33AM

And yea, no action this weekend.

20

Posted by guest , Aug 23, 2008 8:26PM

The collapse is near. What will you own to survive?

21

Posted by stockshotz , Aug 23, 2008 8:38PM

The real question is how much the government will have to spend to backstop Fannie and Freddie, and what the implications are on the overall economy. Read our Tuesday Aug 19 post on this topic at www.stockshotz.blogspot.com

Bernanke did his best yesterday to keep everyone calm by saying he thinks that inflation will moderate. Did anyone really believe what he said?

22

Posted by guest , Aug 23, 2008 8:38PM

months away. they aren't going out of business...at least until next qtr. as long as they don't get delisted, they are ok.

23

Posted by guest , Aug 24, 2008 12:57PM

The stock is either right at $5 or below $5. Warren Buffet says there is no value in the GSEs. Why is nationalization so far off?

24

Posted by guest , Aug 24, 2008 10:33PM

Freddie and Fannie have been living in sin for too long. It's time they got married.

25

Posted by guest , Aug 24, 2008 10:34PM

Freddie and Fannie have been living in sin for too long. It's time they got married.

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