Fannie Mae 1 year chart (09/10/07 $62.76 price vs. 09/06/08 $7.04)
I cannot believe this news! Seriously our government is planning to takeover two publicly traded corporations on the NYSE named Fannie Mae (FNM) and Freddie Mac (FRE). Did our government bother to consult the United States TAXPAYERS about this business venture they are forcing us into???? NO, I didn't think so. Okay, so is our government going to be bailing out by acquiring every damn corporation that is on the verge of failing in America??? Whatever happen to our country's ideals of FREE MARKETS?Is our government taking this action out of GUILT attempting to soften the blow?!?! Had our U.S. Federal Reserve, U.S. Sec. of Treasury Henry Paulson and other U.S. banking and housing regulators been doing their damn jobs to begin with NONE OF US would be in this mess to begin with.... The Banksters and Lenders have been given a FREE PASS out of jail by our government EVEN THOUGH the past 7 years have been riddled with corruption, greed and fraud. CRAZY!
The Banksters had a fiduciary duty to uphold! Instead, against their better judgment and swooned by their greed the Banksters pushed loan programs that allowed anyone to qualify. This opened the door to rampant corruption, greed and fraud that rippled out of control. This behavior went UN-MONITORED and is the MAIN CAUSE of the collapse of our housing market and therefore our economy.
Is ANYBODY going to be held accountable for this fiasco? Why haven't ANY investigations been started??? Perhaps, the SEC and FBI are afraid to open PANDORA's Box! But the FBI has time to use OUR TAXPAYER dollars to arrest a local Culver City Blogger Kevin Cogill with felony charges in leak of Guns N' Roses songs! Click here to read the L.A. Times article dated August 29, 2008. "He faces up to three years in prison and fines under a law cracking down on individual bootleggers." What the Blogger did was wrong. However, I can't believe the FBI has NOT cracked down on ANY of the White Collar criminals responsible for the housing crisis. Plus, the SEC took the time to investigate and indict Martha Stewart for selling a measly 3,928 shares of her ImClone stock. Click here to read the story directly from the SEC! Oh but Angelo Mozillo, CEO of Countrywide sold 100,000s of Countrywide shares which severely depreciated the price of Countrywide stock at the expense of the shareholders ~ is OFF-LIMITS and UNTOUCHABLE!!! The same hold true for ALL of the other sub-prime CEO lenders prior to their implosions. Shameful I tell you. SHAMEFUL! NO ONE should be ABOVE the LAW!
How can we expect to have integrity restored back to the markets if NOTHING is done and nobody is held accountable? What kind of precendence are the people in 'positions of power' meaning to set? This is NOT acceptable! Haven't we learned anything from the S&L crisis or the Junk Bond debacle of the 1980s???
****************************************************
CNBC.com
By Reuters 06 Sep 2008 01:01 AM ET
The U.S. government plans to put government sponsored mortgage finance companies Fannie Mae and Freddie Mac under federal control, the New York Times and Washington Post newspapers reported late Friday, in what could be the largest financial bailout in the nation's history.
The two government sponsored enterprises (GSEs) own or guarantee almost half of the country's $12 TRILLION in outstanding home mortgage debt.
The Wall Street Journal reported earlier on Friday that the U.S. Treasury Department is close to finalizing a plan to restructure the two companies that includes changes to their senior management.
The plan could be announced as early as this weekend, the Journal said.
U.S. Treasury spokeswoman Brookly McLaughlin declined to comment on the Journal report on Friday. Fannie Mae and Freddie Mac spokesmen also declined to comment. The Federal Reserve, which earlier this year gave both companies the right to borrow from its discount window if necessary, declined comment also.
The two firms would be placed in "conservatorship", the Washington Post said, citing sources familiar with the discussions.
The value of the company's common stock would be diluted but not wiped out, while the holdings of other securities, including company debt and preferred shares, would be protected by the government, the Washington Post said.
Senior Bush administration and Federal Reserve officials called in top executives of Fannie Mae and Freddie Mac on Friday and told them that the government was preparing to place the two companies under federal control, officials and company executives told the New York Times.
Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson were present at meetings with James Lockhart, the director of the Federal Housing Finance Agency, the regulator of the two companies, and with Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron on Friday, Reuters can confirm. There were separate meetings with the two CEOs.
Click here to read the entire article. It is extremely important that you stay informed because this is also affecting you.
No comments:
Post a Comment