FNM/FAE bailout ??? :)

[Coronita]

I never thought it would happen. But apparently it’s gonna….Holy crap…I feel sorry for us taxpayers (worse for our children).

WSJ says gov’t may soon back troubled mortgage finance giants Fannie Mae, Freddie Mac
WASHINGTON (AP) — The government may soon step in to provide a financial boost to mortgage finance companies Fannie Mae and Freddie Mac, the Wall Street Journal reported late Friday.

The paper said an announcement “could come as soon as this weekend” but said exact details of the plan couldn’t be learned. It said the plan would include executive changes at both companies.

Representatives of Fannie and Freddie declined to comment. Treasury spokeswoman Brookly McLaughlin said officials “have been in regular communications” with Fannie and Freddie, but refused to comment on the story saying, “We are not going to comment on rumors.”

Treasury recently signed a contract with Morgan Stanley to investigate the financial position of Fannie and Freddie, with help from the Federal Housing Finance Agency, the new regulatory body created by Congress to oversee the mortgage giants.

Asked if an announcement could come soon, McLaughlin said, “We are making progress in the work with Morgan Stanley and FHFA.” A spokeswoman for the FHFA also declined to comment.

This summer, Congress passed a plan to provide unlimited government loans to Fannie and Freddie and to purchase stock in the two companies if needed.

Critics say the open-ended nature of the rescue package could expose taxpayers to billions of dollars of potential losses.

Supporters, however, argue the Bush administration had little choice but to support Fannie and Freddie, which together hold or guarantee $5 trillion in mortgages — almost half the nation’s total.

Many in Washington and on Wall Street hadn’t expected Treasury Secretary Henry Paulson to intervene unless the companies had trouble issuing debt to fund their operations.

The report of possible government action came after stock markets closed.
—

A government shakeup of Fannie Mae (FNM – Cramer’s Take – Stockpickr) and Freddie Mac (FRE – Cramer’s Take – Stockpickr) could come as soon as this weekend, The Wall Street Journal reported on late Friday.

High-level talks between Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, Fannie Mae CEO Daniel Mudd, Freddie Mac CEO Richard Syron and the companies’ new regulator, the Federal Housing Finance Agency were planned for Friday, the Journal said.

While the Journal did not disclose details of the plan in its report after the market’s close, it said it would involve use of Treasury’s new powers to inject capital in the companies, approved by Congress earlier this year. It also would include changes to management at both companies. Fannie Mae last month shuffled three top executives, but not Mudd.

Shares of the two government-sponsored mortgage giants have been volatile in trading over the past few months, as traders reacted to rumors and speculation over whether or not a government bailout was imminent — a development that would likely wipe out shareholders.

[Arty]

Does this mean that if you didn’t sell these two stock by the end of today, you are SOL? Or the government is going to do a take over offering you market price…which hopefully is still zero dollar!

[Arty]

Does this mean that if you didn’t sell these two stock by the end of today, you are SOL? Or the government is going to do a take over offering you market price…which hopefully is still zero dollar!

[Arty]

Does this mean that if you didn’t sell these two stock by the end of today, you are SOL? Or the government is going to do a take over offering you market price…which hopefully is still zero dollar!

[Arty]

Does this mean that if you didn’t sell these two stock by the end of today, you are SOL? Or the government is going to do a take over offering you market price…which hopefully is still zero dollar!

[Arty]

Does this mean that if you didn’t sell these two stock by the end of today, you are SOL? Or the government is going to do a take over offering you market price…which hopefully is still zero dollar!

[peterb]

I smell the dollar getting a little smack outta this. Ouch. Thanks uncle sam. We’re saved.
I guess we can count on the printing machine to get us back into inflation. But I think it’s going to just buy us stagflation. Devaluing the US$, while the economy just sits there. Like a deer inthe headlights.

[peterb]

I smell the dollar getting a little smack outta this. Ouch. Thanks uncle sam. We’re saved.
I guess we can count on the printing machine to get us back into inflation. But I think it’s going to just buy us stagflation. Devaluing the US$, while the economy just sits there. Like a deer inthe headlights.

[peterb]

I smell the dollar getting a little smack outta this. Ouch. Thanks uncle sam. We’re saved.
I guess we can count on the printing machine to get us back into inflation. But I think it’s going to just buy us stagflation. Devaluing the US$, while the economy just sits there. Like a deer inthe headlights.

[peterb]

I smell the dollar getting a little smack outta this. Ouch. Thanks uncle sam. We’re saved.
I guess we can count on the printing machine to get us back into inflation. But I think it’s going to just buy us stagflation. Devaluing the US$, while the economy just sits there. Like a deer inthe headlights.

[peterb]

I smell the dollar getting a little smack outta this. Ouch. Thanks uncle sam. We’re saved.
I guess we can count on the printing machine to get us back into inflation. But I think it’s going to just buy us stagflation. Devaluing the US$, while the economy just sits there. Like a deer inthe headlights.

[Arraya]

We are all homeowners now! YAY!!

A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.

As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.

http://www.dailyreckoning.com.au/fannie-mae-and-freddie-mac-bail-out/2008/09/05/

Let’s not forget those pesky Ruskies..

“Russia says further cuts Freddie, Fannie holding”

“SOCHI, Russia, Sept 5 (Reuters) – Russia has slightly further reduced its holdings of U.S. mortgage agencies Freddie Mac (FRE.N: Quote, Profile, Research) and Fannie Mae (FNM.N: Quote, Profile, Research), central bank’s first deputy chairman Alexei Ulyukayev said on Friday.

At the start of the year Russia held $100 billion — or over one sixth of its gold and forex reserves — in Fannie Mae,
Freddie Mac and Federal Home Loan Banks.
In the summer, officials said that the holdings had been reduced by around 40 percent through not replacing maturing paper.

[Arraya]

We are all homeowners now! YAY!!

A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.

As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.

http://www.dailyreckoning.com.au/fannie-mae-and-freddie-mac-bail-out/2008/09/05/

Let’s not forget those pesky Ruskies..

“Russia says further cuts Freddie, Fannie holding”

“SOCHI, Russia, Sept 5 (Reuters) – Russia has slightly further reduced its holdings of U.S. mortgage agencies Freddie Mac (FRE.N: Quote, Profile, Research) and Fannie Mae (FNM.N: Quote, Profile, Research), central bank’s first deputy chairman Alexei Ulyukayev said on Friday.

At the start of the year Russia held $100 billion — or over one sixth of its gold and forex reserves — in Fannie Mae,
Freddie Mac and Federal Home Loan Banks.
In the summer, officials said that the holdings had been reduced by around 40 percent through not replacing maturing paper.

[Arraya]

We are all homeowners now! YAY!!

A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.

As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.

http://www.dailyreckoning.com.au/fannie-mae-and-freddie-mac-bail-out/2008/09/05/

Let’s not forget those pesky Ruskies..

“Russia says further cuts Freddie, Fannie holding”

“SOCHI, Russia, Sept 5 (Reuters) – Russia has slightly further reduced its holdings of U.S. mortgage agencies Freddie Mac (FRE.N: Quote, Profile, Research) and Fannie Mae (FNM.N: Quote, Profile, Research), central bank’s first deputy chairman Alexei Ulyukayev said on Friday.

At the start of the year Russia held $100 billion — or over one sixth of its gold and forex reserves — in Fannie Mae,
Freddie Mac and Federal Home Loan Banks.
In the summer, officials said that the holdings had been reduced by around 40 percent through not replacing maturing paper.

[Arraya]

We are all homeowners now! YAY!!

A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.

As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.

http://www.dailyreckoning.com.au/fannie-mae-and-freddie-mac-bail-out/2008/09/05/

Let’s not forget those pesky Ruskies..

“Russia says further cuts Freddie, Fannie holding”

“SOCHI, Russia, Sept 5 (Reuters) – Russia has slightly further reduced its holdings of U.S. mortgage agencies Freddie Mac (FRE.N: Quote, Profile, Research) and Fannie Mae (FNM.N: Quote, Profile, Research), central bank’s first deputy chairman Alexei Ulyukayev said on Friday.

At the start of the year Russia held $100 billion — or over one sixth of its gold and forex reserves — in Fannie Mae,
Freddie Mac and Federal Home Loan Banks.
In the summer, officials said that the holdings had been reduced by around 40 percent through not replacing maturing paper.

[Author]

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