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Us Treasury Rescue For Fannie Mae And Freddie Mac

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http://business.timesonline.co.uk/tol/busi...icle4322440.ece

US TREASURY secretary Hank Paulson is working on plans to inject up to $15 billion (£7.5 billion) of capital into Fannie Mae and Freddie Mac to stem the crisis at America’s biggest mortgage firms.

The two companies lost almost half their market value last week as rumours of a government bail-out swept the stock markets, hammering share prices around the world.

Together, the two stockholder-owned, government-sponsored companies own or guarantee almost half of America’s $12 trillion home-loan market and are vital to the functioning of the housing market.

The capital-injection plan is said to be high on a list of options being considered by regulators as a means of restoring confidence in the lenders. The move would protect the American housing market, but punish shareholders in both companies.

Should last them until 9:15 on monday morning.

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OK then. Will it help the financial crisis or make it worse?

Everything that isn't letting the bankers go bankrupt is bad news.

It's a bust, the only thing that should be done is an offer of commiserations to those caught up in it.

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'Should last them until 9:15 on monday morning'

http://money.cnn.com/2008/07/11/news/econo...sion=2008071209

NEW YORK (Fortune) -- They own or guarantee $5 trillion worth of mortgages­ - nearly half of all the country's outstanding home loan debt-and they're crashing. Big time.

What a waste of $15 billion, but hey whats $15 billion when you have been squandering trillions for the past decade?

I fear this is all way out of anyones control now, and no one knows quite what to do?

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'Should last them until 9:15 on monday morning'

http://money.cnn.com/2008/07/11/news/econo...sion=2008071209

NEW YORK (Fortune) -- They own or guarantee $5 trillion worth of mortgages­ - nearly half of all the country's outstanding home loan debt-and they're crashing. Big time.

What a waste of $15 billion, but hey whats $15 billion when you have been squandering trillions for the past decade?

I fear this is all way out of anyones control now, and no one knows quite what to do?

Yeah I agree. The wheels are coming off big time now. 15 billion is pocket change compared to the problem. Why even bother?

MR Mortgage posted a good video on this just yesterday.

Best line from him? 'the housing market could go into a "death spiral"!'

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MR Mortgage posted a good video on this just yesterday.

He's excellent. No heat, just light. So, they're not govt. backed, the big boy bond holders will be forced to take a hit, they won't be nationalised, and the treaury will just keep 'em ticking over. Hence why Paulson is only pumping in a small amount of capital (if he goes that route), and maybe takes Lehman out of the game whilst he's at it.

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US TREASURY secretary Hank Paulson is working on plans to inject up to $15 billion (£7.5 billion) of capital into Fannie Mae and Freddie Mac to stem the crisis at America’s biggest mortgage firms.

The two companies lost almost half their market value last week as rumours of a government bail-out swept the stock markets, hammering share prices around the world.

So it was not just a rumor then

Together, the two stockholder-owned, government-sponsored companies own or guarantee almost half of America’s $12 trillion home-loan market and are vital to the functioning of the housing market.

$15 billion is a drop in the ocean when it come to obligations of $12 trillion that is based on real assets worth less than $6tr.

if one of these is allowed to go down then get your a$$ to Tesco's and stack up on food to relive them of some of their Emergency food stocks piles before the full impact of the crises spreads over here.

Ministers are in talks with supermarkets about emergency food reserves in case fuel protests lead to shortages at shops.

The government wants to ensure retailers and suppliers can continue to sell basics such as meat, bread and milk if hauliers bring the country to a halt.

They have asked supermarkets to make contingency plans “in case the infrastructure of the country breaks down”.

Among those who have taken part are farmers, dairies, bakeries and supermarkets.

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So it was not just a rumor then

$15 billion is a drop in the ocean when it come to obligations of $12 trillion that is based on real assets worth less than $6tr.

The "rumour" was the govt. may have to take them over. Not bung 'em a few billion. It is the impact of having $6trillion on the govt. books which is causing people to loosen their bowels. They won't so they needn't.

50% of the $12trillion = $6 trillion. There I've saved you $6 trillion already.

There are far too many teenage girls running around in a giddy panic because they've lost their hairstraightners. People are being set up to give away their assets for peanuts. Be careful you don't join them.

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He's excellent. No heat, just light. So, they're not govt. backed, the big boy bond holders will be forced to take a hit, they won't be nationalised, and the treaury will just keep 'em ticking over. Hence why Paulson is only pumping in a small amount of capital (if he goes that route), and maybe takes Lehman out of the game whilst he's at it.

He is good. He does say that Freddie and Fannie need to be saved otherwise housing will go into a death spiral. I'm not sure how they can be saved now, by anyone. He's spot on that taxpayers shouldn't be taking a hit on this, rather the bond holders should. But either way the "death spiral" looks pretty unavoidable to me.

This phrase "too big to fail". I would say in this global economy of multinational banks etc, these sorts of institiutions are now quite clearly "too big to save"!!by the taxpayers or anyone else.

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What a waste of $15 billion, but hey whats $15 billion when you have been squandering trillions for the past decade?

I fear this is all way out of anyones control now, and no one knows quite what to do?

Considering we have Bush in charge that's a bit of a understatement, it's a bit like Forrest Gump without the charm.

The world economy is royally screwed, the banks where allowed to get greedy and they have successfully undermined the entire system and there can be no bail out.

As the for the trillions wars in Iraq, Afghanistan.

The only option will be to write off huge chunks of mortgages in the over indebted countries, there is no other choice. Quite what the will mean to the world economy christ only knows.

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This situation is alarming, if one or both of these are allowed to fail then what would the implications be for the UK and any other country for that matter? Too big a situation to predict the consequences?

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As a few folk said late Friday, early Sat after indymac was announced, the markets will probably rally tomorrow first thing.

I don't think they know which way to go. After making a quick buck they'll probably fall back again.

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OK then. Will it help the financial crisis or make it worse?

the answer my friend is pissing in the wind, the answer is pissing in the wind

you know how the tune goes

:lol:

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http://www.bloomberg.com/news/articles/2015-11-05/wall-street-leans-on-taxpayers-for-blockbuster-apartment-deals

Who do billionaires turn to when they want to buy apartment complexes? The U.S. taxpayer.

Barry Sternlicht’s Starwood Capital Group and Stephen Schwarzman’s Blackstone Group LP are in talks with Freddie Mac to finance two transactions totaling more than $10 billion, according to people with knowledge of the negotiations. Those discussions come after the government-owned mortgage giant already agreed to back Lone Star Funds’ $7.6 billion deal to buy Home Properties Inc. and Brookfield Asset Management Inc.’s $2.5 billion takeover of Associated Estates Realty Corp.

The mortgage guarantor -- which along with its larger counterpart Fannie Mae was rescued in a $187.5 billion taxpayer bailout in 2008 -- is boosting its multifamily lending as their regulator eases restrictions on that part of their business. Cheap debt from the U.S.-backed companies is helping sustain a five-year surge in values for apartment buildings and fueling some of the biggest real estate deals since the financial crisis.

“They wield a very big stick,” said John Levy, a principal at a real estate investment banking firm in Richmond, Virginia, that bears his name. “It takes more time and it’s going to be more expensive” to get transactions done without the two companies, which can lend at rock-bottom rates because their deals have implicit government backing.

Winning Bet

Buying apartment buildings in the U.S. has been a winning bet for the past several years as rents rise amid a shift away from homeownership. That’s attracting investors such as Starwood, which on Oct. 26 said it agreed to purchase 72 rental communities across the country from Equity Residential for $5.4 billion. The announcement came just days after Blackstone reached a $5.3 billion deal to buy Stuyvesant Town-Peter Cooper Village, Manhattan’s largest apartment complex.

Yeah helping the rich to get richer.

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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