"Trouble Ahead For Fannie Mae(OTCBB:FMCC) Shareholders. Despite becoming one of the most highly capitalised penny stocks on the US markets earlier this year, the Federal National Mortgage Solution (FNMA) AKA Fannie Mae has taken a hammering on government plans to privatise the institution. Understandably, shareholders, many of which were already hit hard during the 2008 bailout are waiting anxiously to see how the proposed bill will fare in the senate.
The problem for shareholders is that, ultimately, conservator-ship was the right decision for the country, it just wasn’t the right decision for investors. And this time again, it will take more than the voice of Berkowitz to sway the decision.
"A plan being considered in the Senate would liquidate Fannie/Freddie within five years and replace them with a government-backed reinsurance entity that would back-stop the industry but only after private investors suffer losses first." I wouldn't touch it with a ten foot pole. One of the riskiest stocks to hold, hands down. Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/06062013-secondary-marketing-frannie.aspx
"Personally, I wouldn’t bet on the shareholders of Fannie and Freddie getting their companies back anytime this decade. Although there may be long term value, nobody should count on it for grocery money anytime soon.
Link: Housing Experts Plan the End of Fannie, Freddie
'Fannie Mae and Freddie Mac will not be part of the future housing finance system.Their investment portfolios would be wound down, their securitization activities spun out into the new platform, and their guarantee functions sold to privately funded MBS insurers. Any remaining assets would be sold. Taxpayers would be repaid (to the extent possible) for their past support of Fannie and Freddie," the authors wrote.'
The Street with the real story.
“...Corker-Warner is going to be the approach that eventually becomes law” U.S. Senators Offer Bill to End Fannie Mae, Freddie Mac (4)
"Fannie Mae and Freddie Mac would not be part of the future housing finance system. Their investment portfolios would be wound down, their securitization activities spun out into the new platform, and their guarantee functions sold to privately funded MBS insurers. Any remaining assets would be sold. Taxpayers would be repaid (to the extent possible) for their past support of Fannie and Freddie," the authors wrote. This largely reflects the thinking in Washington, where there is little political appetite to return the agencies back to private hands, even though both are now making record profits. --
MELVIN WATT & RALPH NADER DESPISE EACHOTHER?"Watt has a real chip on his shoulder about white candidates. Back in 2004, Ralph Nader, hardly a conservative, asserted that Watt belligerently confronted him, and demanded that he drop out of the presidential race as a Green Party candidate and support Democratic nominee John Kerry. According to Nader, Rep. Watt had said, "You're just another arrogant white man - telling us what we can do - it's all about your ego - another fucking arrogant white man." Nader demanded an apology from Watt, but never got one."
The cold hard truth with Fannie and Freddie is that you could wake up one morning, look into your portfolio, and see zeros. This stock could literally be deemed worthless OVER NIGHT. No warning, no time to sell, NOTHING.
News 
Market Data 
Discover 
AI
