Fnm Fre

today the difference pretty big, freddy down 10% fannie only 6%...

i reckon especially in pre market there are scalpers that trade them against each other...

do you think the government would make any difference between them, i think whatever they decide, they will apply it on both of them...

as i writ fannie went to almost flat while freddy still 6% down
 
wasnt going to trade all of august , but i had a FNM nightmare disaster dream..and then i saw your post and bought...peace

yeah its gamblin' ...so
 

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nice cubano.

my realized profit some 1200$ as well... (including the 500$ loss on the first entry pre market).
2000 pieces at 2.776 left now... (unrealized 1000$) might let them run till end of day..
 
Quote from GTS:

I agree with this analysis. The gov't cannot afford to let FNM/FRE to completely fail because of the additional economic damage it will cause but if they pull the plug before they get to that point then they can't give the shareholders nothing since the shareholders will rightly claim that the gov't action was premature (e.g. they were solvent when they were taken over)

At these price levels its a pretty low risk bet to go long on either; I don't see the shareholders ending up with zilch, especially coming on the heels of the BSC precedent.
More...

Freddie's capital surplus over the mimimum capital is $2 billions in Q2. In Q1 Freedie had a capital surplus of $6 billions.
 
NEW YORK, Aug 21 (Reuters) - Executives at U.S. mortgage finance company Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) are sounding out private-equity and other investors about buying its shares, although the effort faces a major hurdle, the Wall Street Journal reported on Thursday.

"Senior management has been talking with a wide array of possible investors this week," the report quoted Freddie Mac spokesman David Palombi as saying.

The report said the search for investors is challenged by fears that any investment in Freddie or its main rival, Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz), will be lost if the U.S. Treasury bails out the companies through a purchase of equity in them.

*****

If FRE hadn't played the "we'll raise equity when market conditions improve" game in recent months, then they would have been able to raise equity at higher prices, and possibility without investors worrying about a bailout.

As a result of their actions, it's highly likely that a $5.5 billion (or more) capital raise will be at a price well below $3.
 
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