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Loan Giant Overstated the Size of Its Capital Base
nytimes.com — The proposal to place both companies, which own or back $5.3 TRILLION in mortgages, into a government-run conservatorship. grew out of deep concern among foreign investors that the companies’ debt might not be repaid.
hdar3415- 150 diggs
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- dreams800, on 09/07/2008, -0/+5This is a bad situation getting worse. The end may not be here for a while.
- DCMacHead, on 09/07/2008, -0/+1If the preferred shareholders are wiped out, there's gonna be a lot of banks that get financially "donkey punched". There's a lot of "investment professionals" that purchased this stock thinking it would not be a bagel in the event of a pre-packaged bankruptcy--if it is, there are going to be a lot of institutions and individuals that thought they were sitting on something "safe" that find out the hard way it wasn't.
The blame with this debacle lies at the foot of the Federal Reserve. These knuckleheads are charged with ensuring safety and soundness of the banking system. They did nothing when banks were originating NINJA loans (No Income, No Job or Assets). It's truly appalling that nobody's criticizing the regulators whose job was to ensure that ***** loans don't ***** up our financial system.
- DCMacHead, on 09/07/2008, -0/+1If the preferred shareholders are wiped out, there's gonna be a lot of banks that get financially "donkey punched". There's a lot of "investment professionals" that purchased this stock thinking it would not be a bagel in the event of a pre-packaged bankruptcy--if it is, there are going to be a lot of institutions and individuals that thought they were sitting on something "safe" that find out the hard way it wasn't.
- chicofaraby, on 09/07/2008, -0/+1Fannie Mae and Freddie Mac are great examples of how the privatization of government programs fails miserably.
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