No one has made Herbalife “disappear” yet, as he recently requested, but Pershing was up 11.7 percent through February, and that’s something worth celebrating. Not crying tears of joy over, but raising a glass to, nonetheless. You want wet, raw, uncontrollable displays of emotion, you’re going to need to take Herbalife out in the middle of the night. Read more »
The Pershing Square chief thinks that Fairholme Capital and Perry Capital will win their lawsuits re: the government stealing Fannie Mae and Freddie Mac from their shareholders and directing every last cent of profit into Jack Lew’s slush fund. And he’s figured out how to make even more money from said victory than they will: It begins with not having to pay lawyers to sue the government and ends with common shares doing better than Fairholme and Perry’s preferred shares. Read more »
Exactly What Kind Of “Hand Signals,” Ringtones Did Traders Use To Front-Run Fannie Mae, Freddie Mac?By Bess Levin
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
Are we thinking: Read more »
Turns out that all of those record profits that Fannie Mae and Freddie Mac are turning over to the Treasury don’t so much account for a few billion dollars in losses on delinquent mortgages. Read more »
Over on the imaginary stock markets where Fannie Mae and Freddie Mac trade they’ve had a rough day, with FNMA and FMCC common stock each down almost 13% and the preferred … um … down surprisingly small amounts but, y’know, on light volume. The impetus is presumably this:
A bipartisan group of senators on Tuesday introduced a bill to abolish Fannie Mae and Freddie Mac and replace them with a government reinsurer of mortgage securities that would backstop private capital in a crisis. … Under the bill, which is being led by Tennessee Republican Bob Corker and Virginia Democrat Mark Warner, the two companies would be liquidated within five years.