Report: Treasury readies rescue plan for Fannie, Freddie
The U.S. Treasury is close to announcing a plan to bolster the finances of mortgage titans Fannie Mae and Freddie Mac, the Wall Street Journal reports on its website this afternoon.
The brief story doesn’t give any specifics, but says the plan could be announced this weekend.
From the Journal:
The plan is expected to involve a creative use of Treasury's new authority to make a capital injection into the beleaguered giants. The plan includes changes to senior management at both companies, according to a person familiar with the plans.
No word on whether the companies’ common shareholders would be wiped out. But Treasury Secretary Henry M. Paulson Jr. has previously said his goal was to maintain the companies as shareholder-owned businesses.
Some investors don’t believe it: Fannie Mae shares jumped 62 cents to $7.04 in regular trading, but have plunged to $4.59 in after-hours on the Journal report. Freddie Mac shares rose 15 cents to $5.10 in regular trading but have tumbled to $3.51 after-hours.
Por lo menos quieren ganar tiempo y dejarle el problema a la proxima administración gubernamental. No hay dinero que pueda sostener estos dos Frankestains en el camino largo. Esto ya se viene viendo desde hace 10 años, y ahora el problema se ha salido de toda proporcion.
A quien le tocara tomar las decisiones dolorosas, McCain o Obhama?
Posted by: Sergi Solt | September 05, 2008 at 04:09 PM
Alguien sabe como puede afectar esta noticia en la apertura de los futuros de S&P el Lunes?
Posted by: alberto | September 05, 2008 at 05:48 PM
This is not news, it is merely the public announcement of a fait accompli.
Enough will be said and written about this, and my early appellation of 'Billionaire Socialism', coined from the Bear deal, may not be applicable here if the stockholders are left out in the cold...as they should be. My first impression, some might consider it but a trivial nuance, has to do with Hank Paulson...and his need for an expert PR person. It seems to me, that in uncertain times such as these, it is incumbent on government officials to project confidence and credibility for the sake of a public that is generally in the dark when it comes to things financial on a scale that is practically incomprehensible for most of us.
That special, emergency legislation is required...only to be pooh poohed and insisted will not be utilized...by the Secretary of the Treasury, is ludicrous at best...and a bald-faced lie at worst. I can't speak for anyone else, save my dog Zeke, but I feel as though I've been treated as a fool...as last year's Xmas tree..and I resent it. Is it any wonder why Zeke and I don't trust our government?
Posted by: martscan | September 06, 2008 at 12:23 AM