Sounds like you confirmed my view that there are more paper losses coming. Mark to market derivative losses are not real losses but simply trying to value the derivatives they hold at today's prices. They may even out by maturity and suffer no losses at all. But right now sounds like they have some more paper losses and so they needed the new preferred stock to bolster equity ratios and keep them within regulatory limits.
I am still holding because I think the underlying business model is still good. These guys are suffering partly because they were so successful that they had excess cash that they invested in supposedly ultrasafe Fnma and Fmac preferred stock for dividend income. Guess we'll find out what other derivatives they hold in the Q4 report. Bobwins
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