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New Report Says Feds Growing Increasingly Likely to Recapitalize Fannie and Freddie
By availing itself of a new housing bill signed into law last month, the U.S. Treasury Department is growing increasingly likely to recapitalize Fannie Mae (FNM) and Freddie Mac (FRE) in the months to come – all on the taxpayer’s dime, the weekly financial newspaper Barron’s reports in its edition yesterday (Monday).
Both shares took another beating yesterday, as Fannie Mae’s stock slid over 22% with a decline of $1.76 to close at $6.15. Freddie Mac, seen by many as the weaker of the two, fared even worse with a decline of over 24%, as shares shed $1.43 to close at…
19Aug2008 | Money Morning | Comments Off | ContinuedBuyer Beware: Why You Don’t Want to Buy What Wall Street Banks Are Selling
Imagine that you’re the investment director for one of the new sovereign wealth funds (SWFs). A very important guy – you get to invest several hundred billion dollars, with far fewer committees and shareholder interest groups harassing you than if you the head
of U.S. institutions such as CalPERS or TIAA-CREF.
Last winter, you had delegations from all the big banks in New York explaining that
they’d just had this teensy weensy hiccup in subprime mortgages and so were giving you an unparalleled opportunity to buy shares – or convertible bonds – at a modest discount to the market price. You bit and…
Lehman Brothers Raises Capital After $2.8 Billion Quarterly Loss
Lehman Brothers Holdings Inc. (LEH) was forced to raise fresh capital yesterday (Monday), evidence that the subprime-fueled credit crisis is still far from over.
“I am very disappointed in this quarter’s results,†Chairman and Chief Executive Officer Richard S. Fuld, Jr. said in a company statement released yesterday. “Notwithstanding the solid underlying performance of our client franchise, we had our first-ever quarterly loss as a public company.â€
The fourth-largest U.S. investment bank announced it would raise $6 billion to offset an expected $2.8 billion loss in its fiscal second quarter. Lehman said it expects a loss of $5.14 per share in the period…
10Jun2008 | Money Morning | Comments Off | ContinuedLove of Money: My Financial Confessions
It has been some time since I posted on this topic, but I find myself constantly pondering new ideas and thinking about my own personal finances. Last night I remember lying in bed, eyes wide open, thinking about the common perception and encouragement that most of us feel to spend money that we do not even have. Then you and I are supposed to just turn around and feel completely good about it and fall further and further into the debt trap that spirals out of control. We fill our pockets and houses with junk we don’t even need only…
2Apr2008 | S. Oakes | 1 comment | Continued
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