AI
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| Alias Born | 05/30/2006 |
Sunday, September 07, 2008 2:42:23 PM
BAD monday open probably imo :
i can not give any suggestion to anyone who own stocks in the huge amount of money.Because i may cause them to take wrong decision.
I'm used to trade only with a couple of thousand $$ .
GL , be carefull .
...
As part of the takeover, Mr. Lockhart said the dividends on Fannie and Freddie's common and preferred stock will be eliminated, but that the common and preferred shares will remain outstanding. Additionally, subordinated debt interest and principal payments will continue to be made.
Mr. Paulson, discussing the effect on holders of the companies' common and preferred shares, was adamant they "bear both the risk and the reward of their investment."
"While conservatorship does not eliminate the common stock, it does place common shareholders last in terms of claims on the assets of the enterprises," Paulson said. "Similarly, conservatorship does not eliminate the outstanding preferred stock, but does place preferred stock shareholders second, after the common shareholders, in absorbing losses."
Other changes include an immediate suspension of the two firms' political activities -- including all lobbying.
Importantly, Mr. Paulson said Fannie and Freddie will be allowed to modestly increase their mortgage-backed securities portfolios through the end of 2009. Beginning in 2010, however, the portfolios would be gradually reduced at the rate of 10% annually, largely through a run-off of the portfolios, "eventually stabilizing at a lower, less risky size."
The Treasury said its senior preferred stock purchase agreement includes an upfront $1 billion issuance of senior preferred stock with a 10% coupon from each GSE, quarterly dividend payments, warrants representing an ownership stake of 79.9% in each firm, and a quarterly fee starting in 2010.
Treasury said the senior preferred stock agreements with the two firms will last indefinitely and have an upward limit of $100 billion each. A release said the $100 billion figure was chosen "to demonstrate a strong commitment to the GSEs' creditors and mortgage-backed security holders" and is unrelated to Treasury's analysis of the firms' financial conditions.
...
The reason I need Good DD's :
i can not give any suggestion to anyone who own stocks in the huge amount of money.Because i may cause them to take wrong decision.
I'm used to trade only with a couple of thousand $$ .
GL , be carefull .
...
As part of the takeover, Mr. Lockhart said the dividends on Fannie and Freddie's common and preferred stock will be eliminated, but that the common and preferred shares will remain outstanding. Additionally, subordinated debt interest and principal payments will continue to be made.
Mr. Paulson, discussing the effect on holders of the companies' common and preferred shares, was adamant they "bear both the risk and the reward of their investment."
"While conservatorship does not eliminate the common stock, it does place common shareholders last in terms of claims on the assets of the enterprises," Paulson said. "Similarly, conservatorship does not eliminate the outstanding preferred stock, but does place preferred stock shareholders second, after the common shareholders, in absorbing losses."
Other changes include an immediate suspension of the two firms' political activities -- including all lobbying.
Importantly, Mr. Paulson said Fannie and Freddie will be allowed to modestly increase their mortgage-backed securities portfolios through the end of 2009. Beginning in 2010, however, the portfolios would be gradually reduced at the rate of 10% annually, largely through a run-off of the portfolios, "eventually stabilizing at a lower, less risky size."
The Treasury said its senior preferred stock purchase agreement includes an upfront $1 billion issuance of senior preferred stock with a 10% coupon from each GSE, quarterly dividend payments, warrants representing an ownership stake of 79.9% in each firm, and a quarterly fee starting in 2010.
Treasury said the senior preferred stock agreements with the two firms will last indefinitely and have an upward limit of $100 billion each. A release said the $100 billion figure was chosen "to demonstrate a strong commitment to the GSEs' creditors and mortgage-backed security holders" and is unrelated to Treasury's analysis of the firms' financial conditions.
...
The reason I need Good DD's :
The reason I need Good DD's :
