Freddie (FRE) & Fannie (FNM) 01 (May 08 - Feb 12)

[blid2def]

Oi... format nicer lah.... I kena injured by wall of text...

[kennynah]

yes sir !!!! i do it right away....

(edited... is it better now??)

[blid2def]

[kennynah]

for those who need to scrutinize FNM's financial position vis-a-vis their mortgage portfolio...

here's the link... hopefully, some FA forummers can give some comments... i see those numbers...no amount of formatting can help...

http://www.fanniemae.com/ir/pdf/monthly/2008/083108.pdf

[kennynah]

Bernanke Says Government To Continue Supporting Fannie, Freddie
10/31/2008 2:53 PM ET

(RTTNews) - Federal Reserve Chairman Ben Bernanke said Friday that government support of Fannie Mae (FNM) and Freddie Mac (FRE) must remain strong as the nation works its way through the remainder of the housing crisis. In addition, the Fed chairman told a Berkeley, California audience via satellite that the federal government must continue to play an important role in the mortgage financing market in the future.

"Government likely has a role to play in supporting mortgage securitization, at least during periods of high financial stress," he said.

This role should remain even if suggestions for alternate organization of mortgage financing are incorporated into lending, Bernanke said.

"Even if alternative organizational structures are considered for the future, the U.S. government's strong and effective guarantee of the obligations issued under the current GSE (government-sponsored enterprise) structure must be maintained," he said.

In early September, Treasury Secretary Henry Paulson announced that the government was, in effect, taking control of embattled mortgage lenders Fannie Mae and Freddie Mac. The move was meant to bolster the housing markets and protect the financial system.

Combined, Fannie and Freddie guarantee or own around $5 trillion in mortgages, and their failure would have thrown the mortgage market into a tailspin. However, the government intervention is likely to cost taxpayers hundreds of billions on top of the $700 billion financial rescue package passed in mid-October, adding to the rapidly expanding national debt.

This growth of the national debt has led some to call for replacing Fannie and Freddie with completely private mortgage lenders. However, in his remarks, Bernanke dismissed that notion, suggesting that removing government involvement could exacerbate existing problems making the economy.

"From a public policy perspective, a greater concern with fully privatized (firms) is whether mortgage securitization would continue under highly stressed financial conditions," Bernanke said. "As I have noted, almost no mortgage securitization is occurring today in the absence of a government guarantee."

[millionairemind]

Fannie's loss: $29 billion
Continued problems in housing market continue to drag down government-controlled mortgage finance giant.

November 10, 2008: 8:51 AM ET

NEW YORK (CNNMoney.com) -- Troubled mortgage-finance giant Fannie Mae reported that it lost $29 billion in the most recent quarter, driven by a large jump in the mortgage loans it owned or backed that went bad.

Much of the loss was due to a $21 billion non-cash charge related to how it accounts for tax credits it had been carrying on its books - Fannie is no longer confident it will make enough money in the future to allow it to use those tax credits.

http://money.cnn.com/2008/11/10/news/co ... 2008111008

[kennynah]

will these 2 survive ? i think they will by the sheer fact that the govt will not let them die...will it be of any value to shareholders?? maybe not immediately...but it will once again in the future...when? i duno...

[millionairemind]

Freddie Mac Posts Record Loss, Asks for $13.8 Billion (Update2)

By Dawn Kopecki

Nov. 14 (Bloomberg) -- Freddie Mac, seized by the government two months ago, asked the Treasury for $13.8 billion after a record quarterly loss caused its net worth to fall below zero.

The third-quarter net loss widened to $25.3 billion, or $19.44 a share, after writing down tax assets and providing for bad mortgages and securities, McLean, Virginia-based Freddie said in a regulatory filing today. The losses forced Freddie to request government funds and the company said it expects to receive the money by Nov. 29.

Freddie's demand adds to the government's growing burden as it tries to prevent a collapse in financial markets. Treasury Secretary Henry Paulson has pledged $700 billion to bail out banks and finance companies and the Federal Reserve stepped in to support the short-term debt markets. Fannie Mae, also placed under government control in September, said this week it may need funds at the end of the year and warned the $100 billion earmarked by the government may not be enough.
http://www.bloomberg.com/apps/news?pid= ... refer=home

[blid2def]

Source: http://www.housingwire.com/2008/11/21/f ... from-nyse/

Freddie Mac’s Stock May be Delisted from NYSE

By PAUL JACKSON
November 21, 2008
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Freddie Mac (FRE: 0.4805 -1.94%) said Friday morning in a filing with the Securities and Exchange Commission that the company was notified by the New York Stock Exchange that it had failed to satisfy one of the NYSE’s standards for continued listing of its common stock — in particular, the so-called $1 dollar rule.

Freddie’s common stock has traded below $1.00 per share for the past 30 days, prompting the warning. The GSE said its common and preferred stock would potentially be suspended and delisted unless it provides a plan by Dec. 2 outlining a plan to restore the stock’s daily trading price.

The GSE said it was “currently working with its conservator, the Federal Housing Finance Agency, to explore options relating to this deficiency and has not yet determined its response or any specific action that it will take as a result of the exchange’s notice.”

[blid2def]

And... say bye bye to Fannie's listing soon:

http://www.fanniemae.com/newsreleases/2 ... s+Releases

News Release

November 18, 2008

Fannie Mae Receives NYSE Notification on Continued Listing

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today reported in a filing with the Securities and Exchange Commission (SEC) that the company has been notified by the New York Stock Exchange (NYSE) that it has failed to satisfy one of the NYSE's standards for continued listing of its common stock.

The NYSE advised the company that it was below the exchange's price criteria for common stock because the average closing price of Fannie Mae's common stock for the 30 consecutive trading days ending November 12, 2008 was less than $1.00 per share. As a result, the company's common stock and each of its listed series of preferred stock are subject to suspension and delisting unless the company notifies the NYSE by November 26, 2008 of its intent to cure this deficiency. If the company provides this notice, it will have six months from November 12, 2008, subject to monitoring by the NYSE, to bring its common stock share price and average share price for 30 consecutive trading days above $1.00. Fannie Mae is currently working with its conservator, the Federal Housing Finance Agency, to explore options relating to this deficiency and has not yet determined its response or any specific action that it will take as a result of the exchange's notice.

Fannie Mae's common stock and each of the company's listed series of preferred stock currently remain listed on the exchange under the symbol or prefix "FNM," and will trade on the main platform. Further, each will be assigned a ".BC" indicator by the NYSE to indicate to investors that the company is not currently in compliance with the exchange's continued listing standards.