- Joined
- Sep 28, 2002
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You've gotta love it when a plan comes together.. just another shake down.
Loan Giant Overstated the Size of Its Capital Base
The proposal to place both companies, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies’ debt might not be repaid. Falling home prices, which are expected to lead to more defaults among the mortgages held or guaranteed by Fannie and Freddie, contributed to the urgency, regulators said.
Investors who own the companies’ common and preferred stock will suffer. Holders of debt, including many foreign central banks, are expected to receive government backing. Top executives of both companies will be pushed out, according to those briefed on the plan.
The cost of the government’s intervention could rise into tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers. NY Times - registration required to read full text
..oh, more good news ..and a surprise!! History in the making!!
Mortgage Giants Agreeable to Rescue Plan, but Its Cost Is Unknown
WASHINGTON — Fannie Mae and Freddie Mac agreed on Saturday afternoon to the Bush administration’s plan to rescue them, people briefed on the plan said. Under the plan, the Treasury Department will buy billions of dollars in new mortgage securities issued by the companies and inject an unknown amount of capital into them in quarterly installments, according to these people.
On Sunday, the government plans to announce that it will take control of the mortgage finance giants, remove the top executives and their boards, and appoint a conservator to begin to nurse them back to health. Senior government officials including Treasury Secretary Henry M. Paulson Jr., Federal Reserve Chairman Ben S. Bernanke, and James Lockhart, the top regulator for the companies, informed their top executives about the plan in meetings on Friday and Saturday.
The moves by the Bush administration hold the prospect of becoming the biggest government-funded bailout of private industry in American history. They would put the federal government in control of institutions that finance or guarantee about half of all the mortgages in the country.
NY Times - registration required to view full text
Loan Giant Overstated the Size of Its Capital Base
The proposal to place both companies, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies’ debt might not be repaid. Falling home prices, which are expected to lead to more defaults among the mortgages held or guaranteed by Fannie and Freddie, contributed to the urgency, regulators said.
Investors who own the companies’ common and preferred stock will suffer. Holders of debt, including many foreign central banks, are expected to receive government backing. Top executives of both companies will be pushed out, according to those briefed on the plan.
The cost of the government’s intervention could rise into tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers. NY Times - registration required to read full text
..oh, more good news ..and a surprise!! History in the making!!
Mortgage Giants Agreeable to Rescue Plan, but Its Cost Is Unknown
WASHINGTON — Fannie Mae and Freddie Mac agreed on Saturday afternoon to the Bush administration’s plan to rescue them, people briefed on the plan said. Under the plan, the Treasury Department will buy billions of dollars in new mortgage securities issued by the companies and inject an unknown amount of capital into them in quarterly installments, according to these people.
On Sunday, the government plans to announce that it will take control of the mortgage finance giants, remove the top executives and their boards, and appoint a conservator to begin to nurse them back to health. Senior government officials including Treasury Secretary Henry M. Paulson Jr., Federal Reserve Chairman Ben S. Bernanke, and James Lockhart, the top regulator for the companies, informed their top executives about the plan in meetings on Friday and Saturday.
The moves by the Bush administration hold the prospect of becoming the biggest government-funded bailout of private industry in American history. They would put the federal government in control of institutions that finance or guarantee about half of all the mortgages in the country.
NY Times - registration required to view full text