2008.
07.
16
So, who are Freddie & Fannie?
and yes, they sound like two friendly people.
first, i presumed they were two of the richest shareholders of some big corp.
presumably, human.
they arent.
Freddie & Fannie are two of the biggest Mortgage finance companies in the US. providing property loans, earning from debts by selling the mortgages to investors, banks and other financial corporations.
The depression in housing loans have caused the company to lose capital, decreased demand of loans, increased empty debts with no high value returns have plummet their company stocks and in turn caused financial market instability in not only the US but worldwide - financial institutions and banks holding debts in securites of freddie & fannie as investors sell shares for fear of plummeting share prices.
Freddie & Fannie Blues hit Asean banks. e.g. MUFG, the largest bank in Japan which holds the 3billion worth of mortgage-back securities by Freddie & Fannie.
Freddie Mac stands for Federal Home Loan Mortgage Corporation
Fannie Mae stands for Federal National Mortgage Association
their sibling Ginnie Mae, Government National Mortgage Association.
All of these firms deal with securities, real estate property loans.
With the recent Freddie & Fannie crisis, after selling up to 3billion worth of debts-mortgages in a sell-out auction (here
US Federal reserved has mentioned they would back freddie & fannie up should the worst be inevitable..
'The two companies play a central role in the marketplace by buying hundreds of billions of dollars in mortgages from lenders, repackaging them as securities and then either holding them in their portfolios or selling them to investors. While their stocks trade on the New York Stock Exchange, they were created by Congress to promote housing and the marketplace has long come to believe that they would be bailed out should they become insolvent. They hold a far lower level of capital than banks. In recent years, they have both suffered from accounting scandals and management shake-ups.'
More Bank Failures May Follow IndyMac
Stabilizing Financial Markets Top Priority
and yes, they sound like two friendly people.
first, i presumed they were two of the richest shareholders of some big corp.
presumably, human.
they arent.
Freddie & Fannie are two of the biggest Mortgage finance companies in the US. providing property loans, earning from debts by selling the mortgages to investors, banks and other financial corporations.
The depression in housing loans have caused the company to lose capital, decreased demand of loans, increased empty debts with no high value returns have plummet their company stocks and in turn caused financial market instability in not only the US but worldwide - financial institutions and banks holding debts in securites of freddie & fannie as investors sell shares for fear of plummeting share prices.
Freddie & Fannie Blues hit Asean banks. e.g. MUFG, the largest bank in Japan which holds the 3billion worth of mortgage-back securities by Freddie & Fannie.
Freddie Mac stands for Federal Home Loan Mortgage Corporation
Fannie Mae stands for Federal National Mortgage Association
their sibling Ginnie Mae, Government National Mortgage Association.
All of these firms deal with securities, real estate property loans.
With the recent Freddie & Fannie crisis, after selling up to 3billion worth of debts-mortgages in a sell-out auction (here
US Federal reserved has mentioned they would back freddie & fannie up should the worst be inevitable..
'The two companies play a central role in the marketplace by buying hundreds of billions of dollars in mortgages from lenders, repackaging them as securities and then either holding them in their portfolios or selling them to investors. While their stocks trade on the New York Stock Exchange, they were created by Congress to promote housing and the marketplace has long come to believe that they would be bailed out should they become insolvent. They hold a far lower level of capital than banks. In recent years, they have both suffered from accounting scandals and management shake-ups.'
More Bank Failures May Follow IndyMac
Stabilizing Financial Markets Top Priority
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