Archive for September 5th, 2008

by jhwygirl

Via The New York Times,with a byline reading “3 minutes ago”…

Bearing (Ha. Ha.) shades of the bailout of Bear Stearns, federal officials met on Friday with chief executives of both Fannie Mae and Freddie Mac, informing them that they and their boards would be replaced, shareholders would be virtually wiped out, but the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.

Boy, the Federal Reserve sure loves Friday news dumps, don’t they? Just look at the Fed’s Failed Bank List.

Fannie Mae and Freddie Mac are backing $5.2 TRILLION in mortgages. That is half of all U.S. mortgages.

Maybe I should be saying that the U.S. taxpayers are backing $5.2 trillion in mortgages….

Meanwhile, Wall Street’s Leheman Brothers is contemplating splitting its bank into two – a “good” bank and a “bad” bank…in an effort to rid itself of $30 billion in troublesome loans.

Hey, if the Fed’s are backing bad loans, effectively handing out free bailout money, why not?

Feds seized Indy Mac less than 2 months ago. That was billed as the largest bank collapse in U.S. history.

Looks like we’ve got that one beat, huh? Thank YOU George Bush Jr.!

On the upside (“Huh?” you say…) banking reform and some real housing lending industry oversight might be closer than we think.

From MarketWatch (with newsfeed on both):
Freddie Mac
Fannie Mae

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