Fannie & Freddie Common Stock
What do you guys think will happen to Freddie Mac & Fannie Mae common stock now that the Gov. has taken over?
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I haven't heard the terms of
I haven't heard the terms of the transaction. Is it clear yet what happens to the current equity? Subordinated? Wiped out?
I think the bigger concern in the macro sense is the preferred stock.
- Capt K
Found a bit of info from
Found a bit of info from this article: http://biz.yahoo.com/ap/080907/mortgage_giants_wall_street.html
The bailout itself does have its negatives -- notably, diluting Fannie's and Freddie's common and preferred shares to near-worthless levels.
- Capt K
Market seems to love
Market seems to love this....
Dow futures + 250
S&P futures + 33.50
I think FNM opens @ $1 FRE opens @ .80
trade4size, where did you
trade4size, where did you get those numbers at... $1 and .80?
the govt is taking 79.9% of
the govt is taking 79.9% of each firm. I took the last price and multiplied by .20. Who knows though. The open will come down to a sell imbalance. I have no idea how to trade this much less price it. Just throwing my thoughts out there.
Thanks
Thanks trade4size. Curious to see what goes down tomorrow when its plastered all over the press, too.
both FRE and FNM are trading
both FRE and FNM are trading btwn 1.5 and 1.8 pre market
I ballparked it pretty
I ballparked it pretty good.
My quotes are going absolutely ballistic on these names.