Your email address:

Powered by FeedBlitz

Or add to your news reader: Add to My Yahoo! Add to Google

Friday, July 11, 2008

The land of the formerly free and soon to be government owned

The NY Times runs an article discussing the possibility that the government would put Fannie and Freddie into a conservatorship to administer them.

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.

Wow, that is extremely shareholder unfriendly.

The market seems to have decided this article said "when", not "if", the government takes them over... and the equities have plunged pre-opening.

No comments:

Blog Archive