markets: How Freddie Mac’s Reverse Stock Split Works
- 12/16/08 09:28 AM
The troubled GSE has another way to keep its head above water. Freddie Mac is on life-support system. At the onslaught of the property crisis last September, the government has taken control over the agency’s activities when it fell under conservatorship along with Fannie Mae. Under this arrangement, the two government sponsored enterprises (GSEs) have been infused with $100 billion each but 80 percent of each firm’s stake will be under government control. Diving Share Prices At the start of the year, Freddie Mac’s shares showed minor fluctuations between $30 and $40. By March, the share price plunged below $20 only … (0 comments)
markets: Free Markets in the Eyes of a Culprit
- 11/19/08 08:01 PM
If someone ever honored former Sen. Phil Gramm for his belief in free markets, it would be the U.S. banks' top guns who were in control of the excessive mortgage accumulation two years ago. Gramm was as feisty as any university professor could get with his ideologies, as detailed in a recent report by Eric Lipton and Stephen Labaton of <a href="http://www.nytimes.com/2008/11/17/business/economy/17gramm.html?pagewanted=1&ref=business">The New York Times</a>. The 66-year old senior economic adviser to Sen. John McCain's presidential bid has not expressed any remorse for his laissez faire championing in the senate. Infamous for his Gramm-Leach-Bliley Act that deregulated the activities of banks … (0 comments)
The troubled GSE has another way to keep its head above water. Freddie Mac is on life-support system. At the onslaught of the property crisis last September, the government has taken control over the agency’s activities when it fell under conservatorship along with Fannie Mae. Under this arrangement, the two government sponsored enterprises (GSEs) have been infused with $100 billion each but 80 percent of each firm’s stake will be under government control. Diving Share Prices At the start of the year, Freddie Mac’s shares showed minor fluctuations between $30 and $40. By March, the share price plunged below $20 only … (0 comments)
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