Quote:
Originally Posted by sjl127
http://biz.yahoo.com/nytimes/080711/...2725.html?.v=4
Bush administration considering a plan to have government take over the companies and place them in a conservatorship
Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.
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Fannie MAE & Freddie MAC are both in deep shit !
Both companies being born of congress are under federal housing regulation, and must maintain a certain "Critical Capital" level.
The action is being considered because the shares are already sliding significantly. Fannie is down 67%(this year), and Freddie is down 77%(this year) In the last week alone, Freddie has lost 45% value, and Fannie - 30%.
I do believe the top Democrates are backing this one.
"It's a Cluster Fuck Sir"