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hlsi
196 Posts |
 Posted - 07/12/2008 : 1:54:53 PM
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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4322440.ece
Fannie's current market cap is 10 billion.
The Treasury department is going to buy a new stock issue worth more than the entire current market cap.
The US government is about to own Fannie. |
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kellamtom
617 Posts |
Posted - 07/12/2008 : 2:03:02 PM
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| ... Blueprint for a dollar crisis |
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johnnyboy38109
2803 Posts |
Posted - 07/12/2008 : 2:03:07 PM
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The US Treasury just said in a presser yesterday no formal takeover is planned.
To some extent it has control already, since Fannie and Freddie are both government sponsored (but stockholder held) entities. |
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johnnyboy38109
2803 Posts |
Posted - 07/12/2008 : 2:05:31 PM
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| http://news.yahoo.com/s/nm/20080711/bs_nm/fanniemae_freddiemac_dc |
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hlsi
196 Posts |
Posted - 07/12/2008 : 2:09:09 PM
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Guys, the Times UK article is from their upcoming Sunday paper.
They're saying that the denials of a bailout on Friday weren't true and that this bailout plan is being worked out as we speak this weekend. |
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peter
4181 Posts |
Posted - 07/12/2008 : 2:14:13 PM
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Looks like Fannie & Freddie will take further steps to
conserve their working capital and to add on more risk
premiums to their rates and fees as the cost of their
borrowing will increase as a result of downgrading of
their debt issues, expected to come from rating agencies
like Moody's.
The housing market could become a black hole for Fannie
& Freddie with higher rates of defaults and falling prices
of the underlying asset (homes and multidwelling units).
What they say is sufficient capital today may not even be
enough for tomorrower's dire situation. It sounds like
what Countrywide had said earlier this year that Countrywide
had enough capital with plenty of credit lines from banks
and see what's happening. The same line was echoed by
IndyMac and see what has happened.
Peter |
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808
2221 Posts |
Posted - 07/12/2008 : 2:21:10 PM
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this is kinda like the JP Morgan, Bear Stearns, Feds weekend deal a couple of months ago except this one is not being done w near as much secrecy. Well at least I know what the dominant topic will be on Squawk Box Mon morning
I'm not liking Citi posting an $8Billion dollar loss either. Cant wait to see what wholesale looks like come Labor Day |
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johnnyboy38109
2803 Posts |
Posted - 07/12/2008 : 2:25:02 PM
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quote:
Originally posted by hlsi
Guys, the Times UK article is from their upcoming Sunday paper.
They're saying that the denials of a bailout on Friday weren't true and that this bailout plan is being worked out as we speak this weekend.
How are they in a position to say that what the US Treasury Secretary just said publicly yesterday isnt true? |
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ejgoldy
83 Posts |
Posted - 07/12/2008 : 2:35:34 PM
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| This week's Barrons had an interesting piece on this situation. Bottom line is that the author believes that with the govie taking over the gses rates will be lower, and guidelines looser since shareholders and having to pay dividends will be gone. Strangely it does make some sense. |
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SolarMTG
317 Posts |
Posted - 07/12/2008 : 2:55:37 PM
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| I question the ligitimacy of the article. How is this accurate? If it were true, why isn't it all over? You would think there would be more than just the one article? |
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hlsi
196 Posts |
Posted - 07/12/2008 : 3:18:07 PM
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Bloomberg has picked up the story now.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adGvdKB7NpAg&refer=home
Although they're sourcing it through the Times story.
I think that rates will improve near term if this story has legs. If the Treasury department basically is the majority owner of Fannie, that should narrow the spread between Treasury debt and Fannie's debt. As Kellamtom points out though, look out below Dollar. |
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ritabradley01
2918 Posts |
Posted - 07/12/2008 : 3:44:41 PM
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I don't know if I like the idea of the government having so much control over the mortgage industry,
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808
2221 Posts |
Posted - 07/12/2008 : 4:40:39 PM
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quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I agree w you on that, it'll eventually turn into the Post Office |
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CoolMtgGuy
2807 Posts |
Posted - 07/12/2008 : 4:51:31 PM
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There ain't that much left to control. Besides, banks are an integral part of the country's monetary system and therefore cannot be left unregulated. The mortgage industry did a great job of destroying itself and creating opportunity for th gov to step in and do as it pleases. In fact, many consumer advocates are saying that the gov still isn't controlling the industry enough. Haven't heard any protests from the public have you?
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
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ritabradley01
2918 Posts |
Posted - 07/12/2008 : 7:17:44 PM
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wow we agree on something 808
quote:
Originally posted by 808
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I agree w you on that, it'll eventually turn into the Post Office
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UniversalMC
39 Posts |
Posted - 07/12/2008 : 7:51:16 PM
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quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I'd love to hear if you have any other better ideas as to what might help this situation? |
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twincse
2 Posts |
Posted - 07/12/2008 : 8:06:37 PM
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quote:
Originally posted by CoolMtgGuy
There ain't that much left to control. Besides, banks are an integral part of the country's monetary system and therefore cannot be left unregulated. The mortgage industry did a great job of destroying itself and creating opportunity for th gov to step in and do as it pleases. In fact, many consumer advocates are saying that the gov still isn't controlling the industry enough. Haven't heard any protests from the public have you?
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
Hmm, kinda funny how this all happened and how its going to end up.
Coincidence?
Man on a grassy knoll? |
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homebroker@sbcgl
2668 Posts |
Posted - 07/12/2008 : 11:59:51 PM
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Good thing to think about as our country is one more step closer to socialism. Scary!
quote:
Originally posted by twincse
quote:
Originally posted by CoolMtgGuy
There ain't that much left to control. Besides, banks are an integral part of the country's monetary system and therefore cannot be left unregulated. The mortgage industry did a great job of destroying itself and creating opportunity for th gov to step in and do as it pleases. In fact, many consumer advocates are saying that the gov still isn't controlling the industry enough. Haven't heard any protests from the public have you?
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
Hmm, kinda funny how this all happened and how its going to end up.
Coincidence?
Man on a grassy knoll?
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ritabradley01
2918 Posts |
Posted - 07/13/2008 : 12:20:35 AM
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Why bother, it's completely out of our hands. Some even believe it's been orchestrated to happen this way. I'm to the point where I just want to enjoy the good life and help a few people while I can.
quote:
Originally posted by UniversalMC
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I'd love to hear if you have any other better ideas as to what might help this situation?
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ejgoldy
83 Posts |
Posted - 07/13/2008 : 04:47:54 AM
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quote:
Originally posted by 808
quote:
Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I agree w you on that, it'll eventually turn into the Post Office
Don't know about you and/or other citizens, but I have faith when I mail a letter that it will arrive at it's destination. |
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genealle
1018 Posts |
Posted - 07/13/2008 : 05:28:33 AM
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quote:
Originally posted by homebroker@sbcglobal.net
Good thing to think about as our country is one more step closer to socialism. Scary!
More like European Federalism. Next step-Energy. Then the marijuana. Is there no end in site? I should have taken that job in Dubai.
'
I found the Wiki on Fannie Mae interesting: http://en.wikipedia.org/wiki/Fannie_mae
But remember it's Wiki and the internet, so the truth may vary. |
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808
2221 Posts |
Posted - 07/13/2008 : 08:28:03 AM
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quote:
Originally posted by ejgoldy
quote:
Originally posted by 808
[quote]Originally posted by ritabradley01
I don't know if I like the idea of the government having so much control over the mortgage industry,
I agree w you on that, it'll eventually turn into the Post Office
Don't know about you and/or other citizens, but I have faith when I mail a letter that it will arrive at it's destination.
e]I'm talking about the ability to operate in the black and be profitable, not that you get your Christmas Cards to their destinations before Dec 25th. Think where we would be in the mortgage industry alone if there was no Fed Ex, UPS or DHL. The pvt sector brings efficiency & profitability, the Govt brings job security and mkt stability but at a steep price. Pretty soon the money dries up, most all the talent leaves the industry and your left w office drones and lemmings. And I'm not even gonna get into the massive paycut 70% of the people industry would take that stayed in the business
However if this does come to fruition it might let the Post Office off the hook. Pretty soon people will be described as 'going Mortgage Broker' instead of 'going Postal'
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mgraham224
1008 Posts |
Posted - 07/13/2008 : 08:32:40 AM
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quote:
Originally posted by johnnyboy38109
quote:
Originally posted by hlsi
Guys, the Times UK article is from their upcoming Sunday paper.
They're saying that the denials of a bailout on Friday weren't true and that this bailout plan is being worked out as we speak this weekend.
How are they in a position to say that what the US Treasury Secretary just said publicly yesterday isnt true?
That's like saying "how can the papers say that clinton fooled around with monica, because he said it wasn't true?"
Or if Treasury secretary was telling the truth, it's like saying "how can the papers say that Indymac is going out of business when I just heard from their AE yesterday?"
SOMETIMES, especially in these sometimes, things change from day to day.
Believe it or not, 1 or 2 people are probably working on this issue over the weekend. |
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ejgoldy
83 Posts |
Posted - 07/13/2008 : 09:10:54 AM
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| Nice to see you optimistic by using "going mortgage BROKER" rather than just plain "going mortgage!" |
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teamlend
347 Posts |
Posted - 07/13/2008 : 09:19:30 AM
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| Welcome to the USPO sir, left line is for mail, and the line to your right is for a home loan. HELOC's are around the back next to the mail sorting station. |
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teamlend
347 Posts |
Posted - 07/13/2008 : 09:21:54 AM
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No sir, we do not have a "soupline" that is sooooo 1930's.
Would you like your voucher for Mickey Dees or Wendys? |
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homebroker@sbcgl
2668 Posts |
Posted - 07/13/2008 : 09:36:54 AM
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The odd thing is many European countries are now just realizing
just how bad the idea these liberal ways were and destroying their countries, this is why you see many changes in their once very liberal elected government, now changed to new blood like pro American Sarkosy in France, Chancellor Merkel in Germany or PM Berlusconi in Italy.
quote:
Originally posted by genealle
quote:
Originally posted by homebroker@sbcglobal.net
Good thing to think about as our country is one more step closer to socialism. Scary!
More like European Federalism. Next step-Energy. Then the marijuana. Is there no end in site? I should have taken that job in Dubai.
'
I found the Wiki on Fannie Mae interesting: http://en.wikipedia.org/wiki/Fannie_mae
But remember it's Wiki and the internet, so the truth may vary.
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808
2221 Posts |
Posted - 07/13/2008 : 09:39:48 AM
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quote:
Originally posted by teamlend
Welcome to the USPO sir, left line is for mail, and the line to your right is for a home loan. HELOC's are around the back next to the mail sorting station.
sir as I've already told you Hard Money loans are done on Thursday afternoons I cant help it if the auction for your house will be taking place on the courthouse steps on Tuesday, and you also understand there's a 30day recission period that cant be waived even for a foreclosure. You can go to line7 and pick up a voucher for the Patel Hotel #44 |
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teamlend
347 Posts |
Posted - 07/13/2008 : 10:08:23 AM
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No doubt....
quote:
Originally posted by 808
quote:
Originally posted by teamlend
Welcome to the USPO sir, left line is for mail, and the line to your right is for a home loan. HELOC's are around the back next to the mail sorting station.
sir as I've already told you Hard Money loans are done on Thursday afternoons I cant help it if the auction for your house will be taking place on the courthouse steps on Tuesday, and you also understand there's a 30day recission period that cant be waived even for a foreclosure. You can go to line7 and pick up a voucher for the Patel Hotel #44
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teamlend
347 Posts |
Posted - 07/13/2008 : 10:10:15 AM
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Sir you don'ts needz to getz crazy with me, I just work here. SECURITY!!!
quote:
Originally posted by 808
quote:
Originally posted by teamlend
Welcome to the USPO sir, left line is for mail, and the line to your right is for a home loan. HELOC's are around the back next to the mail sorting station.
sir as I've already told you Hard Money loans are done on Thursday afternoons I cant help it if the auction for your house will be taking place on the courthouse steps on Tuesday, and you also understand there's a 30day recission period that cant be waived even for a foreclosure. You can go to line7 and pick up a voucher for the Patel Hotel #44
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ejgoldy
83 Posts |
Posted - 07/13/2008 : 10:14:21 AM
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[quote]Originally posted by homebroker@sbcglobal.net
The odd thing is many European countries are now just realizing
just how bad the idea these liberal ways were and destroying their countries, this is why you see many changes in their once very liberal elected government, now changed to new blood like pro American Sarkosy in France, Chancellor Merkel in Germany or PM Berlusconi in Italy.
[quote][/i]
There's talk of utilizing "covered bonds" to replace securitizations, which is very european. WAMU and BoA have been experimenting with this concept already.
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mgraham224
1008 Posts |
Posted - 07/13/2008 : 1:12:20 PM
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Main problem covered bonds would run into, aside from heavily favoring investors over issuers in terms of risk, would be that higher LTV's would be impossible under the current Pfandbriefe structure.
Perhaps Wamu and BofA are experimenting with new hybrid types, but as it sits now, it's not a plug and play solution. |
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ejgoldy
83 Posts |
Posted - 07/13/2008 : 4:07:56 PM
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Here's the latest news from Sunday. (If you can believe it.)
http://www.cnbc.com/id/25638777/for/cnbc
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