Fannie, Freddie Shareholders Face Wipeout – CNBC
by Tom on September 6, 2008
in Market Musings, the Federal Reserve; market musings
While details of the plan could not be confirmed, these people point out that Treasury Secretary Hank Paulson has in the past insisted that shareholders, including common and preferred shareholders, pay the ultimate price in absorbing losses. That would suggest both classes of shareholders could be wiped out or severely diluted in a reorganization plan.
The plan will not preserve Fannie and Freddie in their current form as government officials believe that no amount of public funds would be sufficient to restore investor confidence.
Fannie, Freddie Shareholders Face Wipeout – Markets * US * News * Story – CNBC.com.
Let’s keep in mind that no one knows for sure what’s really happening yet (at least no one except those on the inside. Let’s say that tomorrow is going to be an interesting day to be on the computer and reading up on this.
Tom
Comments
No Responses to “Fannie, Freddie Shareholders Face Wipeout – CNBC”