4 Economic Scenarios You’d Better Hope Won’t Materialize
In the cast of corporate characters, Fannie Mae (FNM) and Freddie Mac (FRE) are A-list villains, thanks to the central role they played in the 2008 financial meltdown. The two mortgage-finance firms failed as spectacularly as AIG, the poster child for finance-gone-wrong, with the combined Fannie-Freddie rescue totaling about $111 billion so far-the biggest bailout of all. Both firms are effectively nationalized, and the government would probably wind them down except for one thing: They underwrite about three quarters of all the mortgages issued in the United States. You’ve probably heard that the economy is recovering, that consumers are more optimistic, and that companies might soon begin hiring more workers than they’re firing. Hooray. We’ll all be thrilled when the economy stops quivering. The only problem with an upbeat prognosis is that large chunks of the U.S. [Read the full article]
The following is being issued by Fannie Mae (NYSE: FNM):
Application will be made to list the securities on the EuroMTF market of the Luxembourg Stock Exchange
Banc of America Securities, Goldman Sachs & Co., and J.P. Morgan & Co. are the joint lead managers. The co-managers include, Barclays Capital Inc., Cabrera Capital Markets LLC, FTN Financial Capital Markets, MFR Securities, Inc. and RBC Capital Markets.
Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America. [Read the full article]
President Obama on Thursday called on Congress to tax the largest banks to ensure that U.S. taxpayers don’t lose a penny from the federal bailout of the financial, auto and insurance industries over the past year. The “financial crisis responsibility fee” would target major institutions. It would be levied on those that were the main contributors to the financial crisis and the most significant beneficiaries of the extraordinary actions taken by the Federal Reserve and the Treasury Department. “My commitment is to recover every single dime the American people are owed,” Obama said. “We want our money back and we’re going to get it.” Full details of how the measure would work will be part of Obama’s proposed 2011 budget, which won’t be released until early next month. But the president’s announcement comes as banks are set to pay out tens of billions of dollars in bonuses. [Read the full article]