There is much handwringing in certain hedge-fund capitals over the demise of AbbVie’s $54 billion deal to buy an Irish pharma whose only attraction, apparently, was a lower tax bill. Many performance points were lost. But AbbVie’s post-Jack Lew change of heart re: Shire is not the only bloodbath that has hedge funds reeling.
As previously mentioned, a federal judge is annoyingly insisting that the federal government probably has a right to take whatever it wants from Fannie Mae and Freddie Mac, what with the whole $187.5 billion bailout and whatnot. As with AbbVie’s cold feet, certain segments of the I-95 corridor between New Haven and Trenton did not see it coming. And even though the debacle is now well over a month old, casualties are still trickling in. The latest: Marathon Asset Management. Read more »
With its eventual fate still up in the air, Fannie Mae is making plans for the future—by selling its famed colonial-mansion style headquarters in Washington. So if you’re in the market for 228,000 square feet of crumbling office space, or are looking to give your kids the easiest walk to Sidwell Friends ever, give Fannie a call. They may even be able to help out with the mortgage, and the Treasury Department will send welcome flowers. Read more »
Between suing the government for taking all of the profits from two companies that it began taking all of the profits from more than a year before he bought 10% of each of them, and Friday morning, the Pershing Square Capital Management chief had another brilliant idea, and decided to sue the government again. Read more »
Wall Street traders may be manipulating a key derivatives market and front running Fannie Mae and Freddie Mac, hurting the US-owned mortgage giants in the process, according to an FBI intelligence bulletin reviewed by Reuters. Using what Federal Bureau of Investigation agents described as “unsophisticated tradecraft,” such as hand signals and special telephone ring tones, some traders are conspiring to rig rates on large orders submitted by Fannie Mae and Freddie Mac, or front running them in the interest rate swaps market, the document says. –Reuters, Jan 14, 2014