Video: June 14 (Bloomberg) -- Anthony Sanders, a professor of finance at George Mason University, talks about the potential costs of fixing Fannie Mae and Freddie Mac after the biggest bailout in American history.
Click HERE to watch the clip >>
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Bottom line = possible $1 trillion taxpayer bailout.
Seriously. Idiots. I speak of current Fannie & Freddie shareholders. Daytraders and swing traders mostly, though there are thousands of get-rich-quick wannabees who thought they were getting a bargain at a buck. How's that working out for your account this morning? Stock price carnage is here. A quick look shows they are only down about 45% now.
Gives us a chance to mention the report from Monday that puts the total Fannie & Freddie bailout at $160 billion (so far), with a worst case scenario of $1 trillion before we're done.
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Source: Washington Post
NEW YORK -- Government-sponsored mortgage purchasers Fannie Mae and Freddie Mac plan to delist their shares from the New York Stock Exchange.
The companies' regulator, the Federal Housing Finance Agency, said Wednesday that it expects Fannie Mae and Freddie Mac shares to trade on the Over-the-Counter Bulletin Board, an electronic quotation service.
The move to delist the shares isn't a surprise. The crash in the housing market has pounded Fannie Mae and Freddie Mac with heavy loan losses since 2007. Fannie shares have been below the $1 average price level for 30 trading days. NYSE rules require a company to take action to boost its shares or delist.
The government took over the pair in September 2008 under the authority of a law passed by Congress. So far, taxpayers have poured $160 billion into Fannie and Freddie to keep them afloat and to buoy the overall housing market.
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