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Entangled Proton

05/18/10 1:58 PM

#159 RE: MYOB #158

Both FNM and FRE were turned over to a conservator. As soon as he makes his recommendation to the judge a filing will be made and the stock will most likely procede to be traded with or without the bank.
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Entangled Proton

05/18/10 2:09 PM

#160 RE: MYOB #158

This is from FRE's 10Q


Based on the current aggregate liquidation preference of $51.7 billion, Treasury, the holder of the senior preferred stock, is entitled to annual cash dividends of approximately $5.2 billion, which exceeds the company's annual historical earnings in most periods. Including the $1.3 billion quarterly dividend paid on December 31, 2009, the company has paid aggregate dividends of $4.3 billion in cash on the senior preferred stock to Treasury at the direction of FHFA, acting as Conservator.
Freddie Mac expects to request additional draws under the Purchase Agreement in future periods due to a variety of factors that could adversely affect the level and volatility of the company's net worth. For a discussion of these factors, see "LIQUIDITY AND CAPITAL RESOURCES - Capital Resources" in the company's Annual Report on Form 10-K for the year ended December 31, 2009.
Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business.


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