You're now on the archive server. Commenting has been disabled.
The Rats Are Abandoning The Sunken Titanic: Lockhart Resigns From Federal Housing Finance Agency
Developing story: James Lockhart III, the man who is (was) overseeing Fannie and Freddie, has resigned. From the green shoots bleachers - FRE and FNM's pristine condition now allows them to supervise themselves.
Story has been confirmed by the U.S. Treasury.
»
- 4093 reads
- Printer-friendly version
- Send to friend
Hmmm, Moody's said yesterday they believe Fannie and Freddie will be wound down.
http://www.housingwire.com/2009/08/05/moodys-says-us-may-wind-down-fanni...
Related?
Krastner, you reading this? What say you? I am hoping this is the beginning of the end for these monsters. Very little in the mortgage industry has changed since the bubble burst, getting rid of these toxic twins would be a good start.
Then Bernanke will own a lot of collector's item MBS he can sell on eBay for 10 cents on the dollar.
Wound down = 30 min buy-in notice.
Offcourse, The expanded Fed will control everything. Soon enough, the office of presidency will be found to be redundant in the not so distant future. A Tzar will be born and all Czars will be consolidated.
Are you being Tsarcastic?
How can they wind down fannie and freddie, they're the only ones making mortgages. Its nonsensical.
Looks as though the Fed will be in charge of mortgages soon, and they will pay the banks whatever the 30yr rate is on their balances - every day (judging by the daily gains in their stock prices).
The FHA is making as many or more mortgages.
Making room for Rahm since he exhibited exemplary skills cooking the books while on the Board of Directors prior to his run for Congress.
Yes, the mafiosi are always put in charge of these newly-minted welfare agencies. But then they get bored, get tired, get DEPRESSED, and then people who actually KNOW SOMETHING about the SUBJECT are brought in. Then maybe we see some light.
Look at AIG, FNM, FRE stock.............I mean it's crazy.......
Not crazy friend, criminal. Someone is making a killing off some SERIOUS inside information here. This must be investigated and the perpetrators hanged!
Oh never mind this. Don't you understand that the proper way to view this is
HOUSING IS NOW A SOCIAL WELFARE AGENCY IN ITS INFANCY STAGE.
The much more important story is this:
NEW YORK (MarketWatch) -- Treasury prices advanced Wednesday, pushing yields down from the highest levels since June, after the Institute for Supply Management's index on the services sector unexpectedly fell to 46.4 in July.
"This puts a damper on the green-shoots enthusiasts and emphasizes that the contraction has merely lessened," said T.J. Marta, chief strategist at Marta on the Markets."
THE RECOVERY LASTED FROM FEBRUARY 15, 2009 THROUGH JUNE 21, 2009. IT IS NOW OVER. WHY DOESN'T TD FOCUS ITS ATTENTION ON THE
NEXT LEG DOWN
WHICH HAS BEGUN. START WRITING ABOUT ITS EFFECTS, NOT ON SILLY CRYPTOFASCIST DAY TRADERS WHO COLLECT COMIC BOOKS, BUT INSTEAD, ON ITS EFFECTS ON
THE ON-THE-GROUND ECONOMY
PARTICULARLY AS IT RELATES TO
THE COLLAPSE OF THE SUPPLY CHAIN.
I KNOW ZH FOLKS ARE SKYRIDERS WHO ONLY INTERACT WITH REALITY ACCORDING TO COORDINATES ON THE UR-CHART, BUT DON'T YOU THINK YOU GUYS CAN NOW GET YOUR HANDS DIRTY AND TELL US EXACTLY WHAT THE NEXT LEG DOWN IS DOING TO THE ECONOMY HERE ON EARTH. HELL, EVEN THE NEW YORK TIMES IS BETTER AT REPORTING IT THAN ZH.
Easy on the caps there, tiger.
Thems fightin' words
ZH is what it is; close-to-the-source Wall Street reporting. If you want on-the-ground economic analysis, go to Calculated Risk or Mish or Naked Capitalism or Leo Kolivakis or Jesse's Cafe American or ...fuck man just go look. There are plenty of sources for what you are looking for than asking ZH to dillute its focus.
And by the way, all-caps makes you look like an asshole.
Thanks for the reminder of the power and commitment some folks have to the supremacy of their closely held ideas and perceptions.
Does this have anything do with the Taylor Bean story ?
Meanwhile, Mr. Lockhart is probably looking for a two story mansion in Fiji as we speak...
When the going gets tough some look for the exit.
he is a dumb ass anyhow. don't miss much.
The Fannie and Freddie pip pisses me off. Let's see if I have this right:
1. Rape
2. Pillage
3. Plunder
4. Repeat
Speaking of Titanic--just broke----TB&W toast this am
http://ml-implode.com/imploded/lender_Taylor,Bean&WhitakerMortgageCorp.-Wholesale_2009-02-18.html
Sweet.. banks running with negative equity..for a while
Negative equity pushes banks in Forest Lake, Woodbury to brink
http://www.startribune.com/business/52476387.html?elr=KArksLckD8EQDUoaEy...
Interesting.....how many other banks are like this..
Negative capital has dragged their crucial capital ratios below zero as well. A bank's Tier 1 capital must be at least 4 percent for a bank to be considered adequately capitalized. Mainstreet and Brickwell had Tier 1 ratios of negative 0.99 percent and negative 0.98 percent, respectively..
...Since both banks are chartered by the state, it's the Minnesota Department of Commerce's call to shut them down, a spokesman for the Federal Deposit Insurance Corp. (FDIC) said.
This looks like the FDIC's short term plan on staying afloat
August 5, 2009 9:59 AM CST
Advertisements
<!--// <![CDATA[ /* [id35] Run of Site - Left */ OA_show(35); // ]]> -->
<a target='_blank' href='http://www.hw-ads.com/ads/www/delivery/ck.php?n=HWef2a9d7'><img border='0' alt='' src='http://www.hw-ads.com/ads/www/delivery/avw.php?zoneid=35&n=HWef2a9d7' /></a> <!--// <![CDATA[ /* [id49] Run of Site - Right */ OA_show(49); // ]]> -->
<a target='_blank' href='http://www.hw-ads.com/ads/www/delivery/ck.php?n=HWef0f17c'><img border='0' alt='' src='http://www.hw-ads.com/ads/www/delivery/avw.php?zoneid=49&n=HWef0f17c' /></a>
Two giant players in the US mortgage finance market share a ‘bleak’ near- to immediate-term outlook as losses continue to mount, according to Moody’s Investors Service.
Regulators may begin to wind down government-sponsored enterprises (GSEs) Fannie Mae (FNM: 0.74 +29.82%) and Freddie Mac (FRE: 0.80 +31.15%) within the next 18 months, Moody’s said Monday in a global banking analysis report.
Fannie and Freddie landed in conservatorship under the Federal Housing Finance Administration in September, and since have drawn a respective $35.2bn and $50.7bn from the government under an agreement with the US Treasury Department, which said it would purchase up to $200bn of senior preferred stock.
The Moody’s report, authored by Brian Harris, Craig Emrick and Robert Young, noted bondholders will benefit from the government support. But with the GSEs taking heavy losses, a winding down and ultimate resolution by the US government looks likely.
Moody’s noted since Q307, the Fannie and Freddie reported seven consecutive quarterly losses totaling $86.9bn and $63.7bn, respectively. Due to these rising losses, it could take a decade of government ownership before the GSEs can operate as “viable stand-alone entities,” Moody’s said.
Instead, the analysts said the government could resolve Fannie and Freddie’s business and then a new organization might be created to take on their role. A replacement entity would likely bear a different organizational structure and would avoid the criticism that would likely arise if Fannie and Freddie were simply resurrected.
“This is not bad news for Fannie Mae and Freddie Mac bondholders as the US government has become entwined with these companies and the creation of a new entity to support housing finance likely means the orderly conclusion of Fannie Mae and Freddie Mac,” the report reads, in part.
Write to Diana Golobay.
Disclaimer: The author held no relevant investments at the time this story was published.
yes - why isnt the fdic taking these banks quicker? could it be that if you use united as a comp - the losses will deplete the fdic fund..they will have to borrow more from the Treasury - means even more debt issuance..and many many more banks will fail - meaning more treasury issuance...
aig, fnma,fre - what the heck? short covering? no idea whats up but it aint right...
ofcourse my only short - SRS - was down too today..i cant get anything right...
i wonder if this has anything to do with david kellerman affair, the cfo of freddie who 'commited suicide' in april.
Is there anything new happening within FHLB system that we should know about?
Paging James Lockhart IV, paging James Lockhart IV.
I am surprised that this is happening so fast. The transition must have been agreed to and Lockhart falls on the sword. I am sure he is glad to be out of this mess. I will not have my 'favorite guy' to bash so I am drinking.
How about the trading action in the Agency stock this afternoon. No leaks on this story. Not....