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Keyword: mbs

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  • 'Mortgage crisis' is coming this winter: Bove

    09/11/2014 2:02:42 PM PDT · by Lorianne · 27 replies
    CNBC ^ | 02 September 2014 | Jeff Cox
    A toxic brew is bubbling in the housing market that will lead to a mortgage crisis by winter, banking analyst Dick Bove said. Now that the Federal Reserve is nearly done with its monthly bond-buying program, which includes mortgage-backed securities, and Washington continues on its quest to unwind Fannie Mae and Freddie Mac, conditions could get dicey in the home loan market. Bove envisions a scenario in which long-term financing, like the ubiquitous 30-year mortgage, that has come with fixed interest rates is endangered as mortgage buyers dry up. As part of its quantitative easing program, the Fed had been...
  • Ranieri Says Tight Mortgage Lending May Be Worse Than Crisis (How About Borrowers??)

    10/28/2013 10:44:52 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/28/2013 | Anthony B. Sanders
    Mortgage-backed securities legend Lew Ranieri made an impassioned plea for regulations to loosen credit standards on home loans at the Mortgage Bankers Association (MBA) annual conference in Washington D.C. The U.S. mortgage market has experienced an “irrational restriction” of credit as lenders and regulators overreact to the loose lending during the bubble that burst in 2007, mortgage-bond pioneer Lewis Ranieri said. mtgvol1998 “If this legacy persists the consequences will be more profound for the country than the economic losses” caused by the bust, Ranieri said today at an annual conference hosted by the Mortgage Bankers Association in Washington. Ranieri, the...
  • Fed: Forward Guidance Or Crony Capitalism? (The Case Of PIMCO)

    09/27/2013 9:26:35 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/27/2013 | Anthony B. Sanders
    Carrick Mollenkamp had an interesting piece today called “Special Report: Pimco shook hands with the Fed – and made a killing.” In short, the fund-management firm, led by co-founder Bill Gross, started buying tens of billions of dollars in mortgage-backed securities guaranteed by federally sponsored agencies like Fannie Mae and Freddie Mac. In the third quarter of 2011 alone, Pimco’s flagship Total Return Fund, the world’s largest mutual fund, doubled its holdings of these securities to $80 billion, according to a Reuters review of trading and other data. While Pimco was building its hoard, the Fed, in a surprise move...
  • The Return of Private Mortgage Capital? Two Harbors Planning Non-agency MBS

    08/13/2013 1:28:13 PM PDT · by whitedog57
    Confounded Interest ^ | 08/13/2013 | Anthony B. Sanders
    The trend continues towards private capital returning to the mortgage market. Redwood was one of the first securitizing California jumbo loans. Now Two Harbors (Pine River) is entering the market without a government guarantee. Aug. 13 (Bloomberg) by Jody Shenn — Two Harbors Investment Corp., the mortgage real-estate investment trust run by Pine River Capital Management LP, is planning its first issuance of home-loan securities without government backing. Even with investors in AAA slices of such deals demanding even higher yields in comparison to benchmark rates, Two Harbors could earn about 6 percent to 7 percent when retaining the subordinate...
  • Detroit Pension Woes A Drop In The Entitlement Bucket Compared To The USA

    08/05/2013 6:32:21 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 08/05/2013 | Anthony B. Sanders
    Detroit’s fiscal woes have been front and center in the news recently. Now this is a new claim that Detroit’s pension woes are not as bad as Kevyn Orr, the city’s emergency manager, estimated. Orr stated that the underfunding of the city’s two pension funds at $3.5 billion. Orr arrived at that figure in part by estimating the funds’ expected annual return on assets at 7%. The city’s actuary, meanwhile, says the size of the gap is actually $977 million, based in part on an expected annual return of 8%. So, not as bad as Orr’s calculated. But can Detroit...
  • Freddie Mac’s Risk-Sharing MBS Off To A Slow Start (Wide Spread For M2 Mezz Piece)

    07/19/2013 10:32:50 AM PDT · by whitedog57
    Confounded Interest ^ | 07/19/2013 | Anthony B. Sanders
    Freddie Mac’s risk-sharing MBS is off to a slow start. 1 month Libor +350bps for M1 mezz piece and 1 month LIBOR + 750bps for the M2 mezz piece. freedierisk Freddie Mac agency credit-risk bonds price talk widens to 1ML+350bps for M1, 1ML+750bps for M2s. • Guidance from earlier this week was +250bps, +725-750bps; was even wider before deal announcement • May price as soon as July 22 • Information from two people familiar with offering who declined to be identified because terms aren’t set If we look at the term sheet, fredtermsheet, the ‘first loss’ piece is not being...
  • Disturbing Trends: US Money Multiplier and Velocity, Jobs, Mortgage REITs and Agency MBS

    07/06/2013 10:08:28 AM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 07/06/2013 | Anthony B. Sanders
    The much ballyhooed jobs report on Friday (despite the fact that it was PART-TIME, not full-time jobs) raised the hopes of investors. US Treasury 10 year yields jumped 24.1 basis points on Friday on the news. ust10070613 For your consideration. The US labor force participation rate (SA) rose slightly to 63.5%. Of course, that means that 36.5% are NOT participating. Here is M2 Money Velocity plotted against the labor force participation rate (yellow). m2velpart The US Employment Population Ratio (SA) rose slightly to 58.7%. Once again, this means that 41.3% of the population are not employed. He is M1 Money...
  • Treasury Rates Rise Again, MBS Duration Increases (Market Finds A Way)

    06/21/2013 9:05:47 AM PDT · by whitedog57 · 32 replies
    Confounded Interest ^ | 06/21/2013 | Anthony B. Sanders
    Now that we know that The Fed is likely to withdraw its stimulus over the next year, global sovereign rates are rising. And the US Treasury 10 year continues to rise. Then there was this tantalizing story in the Wall Street Journal. Bernanke: Majority of Fed Officials Don’t Expect to Sell MBS The good news? MBS pay down quickly because of prepayments and other mortgage terminations. Hence, mortgage duration is fairly low. The bad news? Duration of Fannie Mae 4% MBS was 0.5 on September 25, 2012 and is now at 5.8 (thanks to rising Treasury rates). So, as Treasury...
  • Sorpresa! Treasury/TIPs Rates Spike, Agency MBS Prices Continue Slide (Fed Failing)

    06/10/2013 11:44:27 AM PDT · by whitedog57
    Confounded Interest ^ | Anthony B. Sanders
    May 2nd was turning point in the fixed-income market. Since May 2nd, Treasury yields have spiked. And Tips yields have spiked over the same period. U-oh. Agency MBS prices continue to decline. For those of us who expected rising rates, the curve trades have been most profitable. Here is the US Treasury curve change since May 2nd. Nearly 60 basis point jump on the 10 year. Here is a chart of Fannie Mae 3% MBS prices since May 2nd. Surprise! Interest rates are rising!
  • Grumpy Ben: Increasing Risk For Ginnie Mae Investors (Fed) – Rising Rates, Spreads And Duration

    06/03/2013 6:47:34 PM PDT · by whitedog57
    Confounded Interest ^ | 06/03/2013 | Anthony B. Sanders
    May has been a difficult month for Ginnie Mae mortgage-backed securities investors (like The Fed). First, the US sovereign yield curve has increased since May 2nd. The spread between the Ginnie Current Coupon and the Bankrate 30 year FHA rate has risen from around 61 basis points to under 100 basis points. The Ginnie MBS 4.0% duration has been rising rapidly with the increase in the yield curve. See here for a definition of duration. The convexity of Ginnie 4.0s has increased as well. The good news for the FHA and Ginnie Mae is the rise in house prices over...
  • First Union, Bear, Stearns Price Securities Offering Backed By Affordable Mortgages (1997)

    09/25/2008 5:58:18 AM PDT · by FreedomPoster · 3 replies · 1,173+ views
    Press Releases Media Contact:   Mark Folk (704) 383-7088 October 20, 1997First Union Capital Markets Corp., Bear, Stearns & Co. Price Securities Offering Backed By Affordable Mortgages Unique Transaction To Benefit Underserved Housing Market CHARLOTTE - First Union Capital Markets Corp. and Bear, Stearns & Co. Inc. have priced a $384.6 million offering of securities backed by Community Reinvestment Act (CRA) loans - marking the industry's first public securitization of CRA loans. The affordable mortgages were originated or acquired by First Union Corporation and subsidiaries. Customers will experience no impact - they will continue to make payments to and be...
  • EU: Cyprus has finally killed myth that EMU is benign

    03/28/2013 2:24:01 AM PDT · by bruinbirdman · 16 replies
    The Telegraph ^ | 3/27/2013 | Ambrose Evans-Pritchard, in Tokyo
    <p>The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.</p>
  • The Obama Hypocrisy: US sues S&P over pre-crisis mortgage ratings

    02/08/2013 6:33:10 AM PST · by Madhattan · 1 replies
    In charges filed late Monday in Los Angeles federal court, the Justice Department said S&P gave high marks to mortgage-backed securities that later went sour, even though it knew they were risky. The government said S&P misrepresented the risks because it wanted more business from the banks. The case is the government's first major action against one of the credit rating agencies that stamped their seals of approval on Wall Street's mortgage bundles. It marks a milestone for the Justice Department, which has been criticized for failing to make bigger cases against the companies involved in the crisis. "Put simply,...
  • Metal Mania: Gold, Silver, Real Estate and Mortgages

    12/02/2012 6:35:58 PM PST · by whitedog57 · 3 replies
    Confounded Interest ^ | 12/02/2012 | Anthony B. Sanders
    There is no doubt that the housing and commercial real estate bubbles (and burst). Gold experienced the greatest appreciation since 2000, with silver in second place. Multifamily real estate (Moody’s REAL) and the Case-Shiller 20 metro index demonstrate the plunge in real estate. Real estate did poorly relative to precious metals since 2000. [Bear in mind that these are price indices, not total rate of return indices.] In terms of total returns, the JP Morgan MBS return index outperformed the SP 500 index. The Dow Jones REIT index is the third index which started and ended at the same place...
  • U.S. Fed QE Infinity, What Is It All About?

    10/05/2012 4:24:56 AM PDT · by blam · 9 replies
    TMO ^ | 10-5-2012 | Ellen Brown
    U.S. Fed QE Infinity, What Is It All About? Interest-Rates / Quantitative EasingOct 04, 2012 - 03:10 PM By: Ellen Brown QE3, the Federal Reserve’s third round of quantitative easing, is so open-ended that it is being called QE Infinity. Doubts about its effectiveness are surfacing even on Wall Street. The Financial Times reports: Among the trading rooms and floors of Connecticut and Mayfair [in London], supposedly sophisticated money managers are raising big questions about QE3 — and whether, this time around, the Fed is not risking more than it can deliver. Which raises the question, what is it intended...
  • Stealth QE3 Is Upon Us, How Ben Did It And What It Means

    08/09/2011 8:44:40 PM PDT · by blam · 6 replies
    Economic Musings ^ | 8-9-2011 | DaviD Schawel
    Stealth QE3 Is Upon Us, How Ben Did It And What It MeansDavid SchawelAugust 9, 2011 Like most market observers and participants, the buildup to this afternoon’s Fed announcement was palpable. With the release void of an explicit “QE3” or new bond buying program, the Street was left to deal with ramifications of holding Fed Funds rates down until mid-2013. While, a new bond buying program was not explicitly announced, the implications will be in the form of a “stealth QE3”. What do I mean? This promise has caused (will cause) longer term rates to rally (prices up, yields down)...
  • Investor Lawsuits Are Raising the Heat on Bank of America for 'Putbacks'

    02/24/2011 6:25:33 PM PST · by FromLori · 18 replies
    Daily Finance ^ | 2/24/2011 | http://srph.it/e8zwP7
    One of the straightest paths this country could take toward Bank Bailout 2, the Sequel, would be through forcing financial institutions to buy back the lousy mortgage-backed securities they sold before the meltdown. Large-scale buybacks could open gaping wounds on bank balance sheets, a risk Bank of America (BAC) is particularly vulnerable to because it swallowed Countrywide's gigantic -- and now infamously fraudulent -- mortgage machine. Regardless of that risk, banks should have to follow the rules of their contracts, and the law. But getting BofA to buy back its mortgage junk won't be easy. As of June 30, 2010,...
  • Regulators: Wake up and smell the loan risks

    01/18/2011 10:07:21 AM PST · by FromLori · 7 replies
    CNN Fortune ^ | 1/13/11 | Eleanor Bloxham
    Disputes related to failed mortgages are ballooning amid the fallout of loan securitizations and sales made by some of the biggest banks. But, for the time being, it doesn't look like the primary bank regulators are doing much about it. One example: The Federal Reserve Bank of New York is part of an investor group now asking Bank of America (BAC) to repurchase the mortgages it bought. The New York Fed sits in an interesting spot as both a concerned mortgage investor and as a regulator of the originators and securitizers that sell them. Despite suffering as an investor itself,...
  • Housing: U.S. economy’s Achilles’ heel

    01/16/2011 2:49:33 PM PST · by FromLori · 4 replies
    Market Watch ^ | 1/16/2011 | Greg Robb
    Housing typically leads economic recoveries, but this time around it’s slowing the economic recovery. Eric Rosengren, the president of the Boston Federal Reserve Bank, called the housing market “moribund” in a speech Friday. “I expect housing will not provide as much support to this recovery has it has in previous ones,” Rosengren said. CIBC World Markets chief economist Avery Shenfeld was even more pessimistic, saying he believes the weak housing sector will be a drag on consumer spending in the second half of the year. Shenfeld said he is forecasting economic growth to average 2.6% in 2011, as consumers will...
  • Indiana couple accuses Bank of America of racketeering

    10/20/2010 10:44:30 AM PDT · by Kartographer · 40 replies
    IBJ.com ^ | 10/20/10
    Bank of America Corp. and its Countrywide Home Loans unit were accused of racketeering in a lawsuit filed by two Indiana residents claiming that perjured affidavits were used to foreclose on their home. Dwayne Ransom Davis and Melisa Davis filed the complaint Tuesday in federal court in Indianapolis. Their lawyer, Irwin Levin, confirmed the filing in a phone interview, but it couldn’t be independently verified. “The defendants and their cohorts engaged in a pattern of racketeering activity in which they routinely and repeatedly prepared perjured affidavits in order to rapidly churn foreclosures,” the couple said in the complaint.
  • A heavy price for 'cheap' mortgages

    07/08/2010 3:06:06 AM PDT · by Scanian · 11 replies · 2+ views
    NY Post ^ | July 8, 2010 | STEPHEN B. MEISTER
    Washington's efforts to keep the housing market afloat are brew ing up another mortgage melt down -- except that this time, Uncle Sam will start off holding the bag. Mortgage rates hit new lows last month as investors gobbled up residential, mortgage-backed securities -- MBSs, the very financial instruments that triggered the subprime crisis. Short-term, that will allow many cash-strapped homeowners to refinance and lower their monthly interest payments -- help to the beleaguered housing market. But it represents a ticking time bomb -- which will blow up in the face of the taxpayers. Until April 1 of this year,...
  • The Case against Goldman Sachs (Did they sell securities that were designed to fail?)

    04/21/2010 9:31:09 AM PDT · by SeekAndFind · 14 replies · 430+ views
    National Review ^ | 04/21/2010 | Larry Kudlow
    I’d like to weigh in on this whole SEC securities-fraud action against Goldman Sachs. The feds have, of course, alleged that Goldman made materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (CDO) that was structured by Goldman and marketed to investors. This is all very complicated. And I know some very smart people lining up on one side saying the SEC’s fraud action is weak. And I know some equally smart people on the other side saying this is an extremely serious matter that will be followed by numerous other SEC fraud charges against other...
  • Oh Really? (Kocherlakota on CNBS)

    04/06/2010 3:15:04 PM PDT · by Cheap_Hessian · 2 replies · 214+ views
    The Market Ticker ^ | April 6, 2010 | Karl Denninger
    The Fed's Kocherlakota said in an interview on CNBS today that The Fed could sell $15-25 billion in mortgage securities a month, implying that this would normalize the balance sheet by 2020. 2020 eh? Ten years into the future? ---SNIP--- Frankly, I don't see how The Fed pulls this off, and since The Jawbone is now out talking about it, I have to assume they're not quite so sure how to do it either. In my opinion skepticism is well-advised here. My belief is that they're trapped. They need lower rates to create that "par" value, while at the same...
  • January Fannie Mae Delinquency Rate Climbs To New Record At 5.52%, 14 bps Higher Than December

    03/31/2010 10:30:42 AM PDT · by Cheap_Hessian · 4 replies · 363+ views
    ZeroHedge Blog ^ | March 31, 2010 | Tyler Durden
    Fannie Mae reported its January total serious delinquency rate for single-family houses: the rate hit a new record of 5.54%, a jump from the December's 5.38%, and double the 2.77% in January 2009. All in all a perfect time for the Fed to be moving away from the mortgage market, pardon, to no longer being the mortgage market. The one saving grace for the Fed, was that new issuance keeps declining: $43.9 billion in MBS was issued in February, 7% less than the $47.6 billion in January. Yet $44 billion is not zero, and we anticipate ongoing new issuance which...
  • PIMCO: End of mortgage buys form of tightening

    03/17/2010 7:14:53 AM PDT · by TigerLikesRooster · 7 replies · 370+ views
    Reuters ^ | 03/16/10 | Jennifer Ablan
    PIMCO: End of mortgage buys form of tightening Jennifer Ablan Tue, Mar 16 2010 NEW YORK (Reuters) - The end of the Federal Reserve's program of purchasing $1.25 trillion of mortgage-backed securities at the end of March is a form of tightening monetary policy, the chief of the largest U.S. bond fund manager said on Tuesday. Mohamed El-Erian, chief executive and co-chief investment officer of Pacific Investment Management Co, or PIMCO, said the end of the Fed's mortgage program, one of the U.S. central bank's major support programs, signals a form of credit tightening. The Federal Reserve Open Market Committee's...
  • Jan CMBS Delinquencies Hit Record $46 Billion, A 10.3% Increase And A 325% Increase Year Over Year

    03/02/2010 6:34:35 PM PST · by Cheap_Hessian · 1 replies · 291+ views
    ZeroHedge Blog ^ | March 2, 2010 | Tyler Durden
    On one hand you have Moody's REAL CPPI index telling you commercial real estate prices not only bottomed in December, but are now increasing at the fastest rate in years. On the other hand you have reality staring you in the face (that is if you are reading the February RealPoint CMBS report), in the form of $46 billion in CMBS delinquencies in January: this was a record 5.762% of total, and represents a 325% increase from the $10.8 billion inJanuary 2009 (and a 10% increase sequentially). Contrary to all propaganda punditry, the rate of deterioration in commercial real estate...
  • Fed's MBS exit could lift Treasury yields

    01/20/2010 9:21:19 AM PST · by Cheap_Hessian · 188+ views
    Reuters ^ | January 20, 2010 | Emily Flitter and Julie Haviv
    Once the Fed stops buying mortgage-backed securities at the end of March, private buyers will need to step in and take over in a market that the government has propped up since the financial crisis reached its peak. But they won't want to buy MBS unless the securities offer a better return than the current rate, so mortgage rates will likely rise. Higher rates could, in turn, spur a hedging practice in the Treasury market that has been largely absent in recent months. As a result, longer-dated U.S. debt could cheapen and yields could climb. A jump in yields would...
  • How ETFs are like mortgage-backed securities

    10/08/2009 9:24:09 AM PDT · by SeekAndFind · 16 replies · 578+ views
    FT Alphaville ^ | 10/7/2009 | Izabella Kaminska
    Bedlam Asset Management takes a look at exchange traded funds in its latest market commentary (H/T paver). Specifically, at how — largely because of greed — a sound concept has once again potentially been bastardised by the financial industry. As Bedlam notes, ETFs started off as a simple and good idea. They were convenient for investors, easy to understand, affordable, the natural successor of earlier market structures like futures. But then — unhappy with the ETFs’ solid but low returns — the industry turned to financial rocket scientists to try and beef up the ETF game. Or as Bedlam observes:...
  • Financial Innovation and the Definition of Insanity

    08/24/2009 11:36:33 AM PDT · by fiscon1 · 1 replies · 146+ views
    The Provocateur ^ | 08/24/2009 | Mike Volpe
    We're all likely more familiar with Mortgage Backed Securities (MBS) and Credit Debt Obligations and their effect on the financial crisis than most of us ever wanted to be. Both of these very sophisticated financial instruments had an important role to play in creating the crisis we are still battling through. One of the biggest problems for both MBS and CDS was that they would take financial instruments of varying degrees of risk and package them together into one bond that would then be given on risk profile by Moody's and other bond rating firms. In other words, varying degrees...
  • Some Hedge Funds Argue Against Proposals to Modify Mortgages

    10/25/2008 5:06:20 AM PDT · by reaganaut1 · 3 replies · 354+ views
    New York Times ^ | October 23, 2008 | Vikas Bajaj and Barry Meier
    Washington is pushing measures to help hard-pressed homeowners, but some Wall Street investors are pushing back. Hedge funds are fighting proposals to ease the terms of home mortgages, arguing that such a move would hurt their investments. Two funds recently warned mortgage companies that they might take action if the companies participated in government-backed plans to renegotiate delinquent loans in a way that undercut the funds’ interests. The saber-rattling highlights the conflicting interests of various players in the mortgage arena and suggests that tensions are likely to intensify as government intervention in the market widens. The two funds — Greenwich...
  • Mortgage Threat From Hedge Funds Irks Democrats

    10/25/2008 5:19:07 AM PDT · by reaganaut1 · 37 replies · 930+ views
    New York Times ^ | October 24, 2008 | Barry Meier
    Several Democratic lawmakers lashed out Friday at hedge funds that have threatened to block attempts to renegotiate mortgages for struggling homeowners. At least two funds, Greenwich Financial Services and Braddock Financial, have told banks that they may take legal action if loans are renegotiated in a way that hurts the funds’ financial interests. Many hedge funds have purchased securities backed by mortgages. The New York Times reported Friday that Greenwich Financial and Braddock Financial, and possibly other funds, were resisting attempts to renegotiate the loans. Several Democratic lawmakers, including Representative Barney Frank of Massachusetts, sent a letter to William Frey,...
  • Ten Observations of Causes and Solutions to the US Financial Crisis in 2008

    10/04/2008 6:49:40 PM PDT · by Rick_Michael · 10 replies · 460+ views
    Leading Execution ^ | Dr. George Weathersby
    Ten Observations of Causes and Solutions to the US The April 21 edition of Investment News reported on a United States Senate Banking Committee hearing: “It’s a vicious cycle,” Sen. Charles Schumer, D-N.Y., said during a Feb. 28 Senate Banking Committee hearing. “How do you mark to market when there is no market?” Mr. Schumer suggested that it might be better if companies just delayed mark-to-market accounting for six months. “If you undervalue it, you may be hurting things as much as if you overvalue it,” he said. Even Federal Reserve Board Chairman Ben Bernanke said that circumstances make it...
  • Banks May Pool Billions to Stop Securities Sell-off

    10/13/2007 8:11:14 PM PDT · by Travis McGee · 19 replies · 194+ views
    NYT via Drudge ^ | Oct 14, 2007 | Eric Dash
    Several of the world’s biggest banks are in talks to put up about $75 billion in a backup fund that could be used to buy risky mortgage securities and other assets, a move designed to ease pressure on a crucial part of the credit markets that threatens the broader economy. Citigroup, Bank of America and JPMorgan Chase, along with several other financial institutions, have been meeting to come up with a plan to create a fund that could prevent a sharp sell-off in securities owned by bank-affiliated investment vehicles. The meetings, which began three weeks ago, have been orchestrated by...
  • http://www.reuters.com/article/marketsNews/idUKN1021958820070810?rpc=44

    08/10/2007 1:50:46 PM PDT · by AdamSelene235 · 2 replies · 284+ views
    reuters ^ | Fri Aug 10, 2007 | Al Yoon
    NEW YORK, Aug 10 (Reuters) - Banks reaching for the Federal Reserve's liquidity lifeline Friday offered only "agency" mortgage-backed securities as collateral, reflecting what could be increasing disfavor for these investments. In its biggest such move by the Fed since the days after Sept. 11, 2001, the central bank on Friday pumped $38 billion in cash into the banking system via three-day loans known as repurchase agreements or repos. As guarantee for repayment, banks could have also offered as collateral U.S. Treasuries or corporate agency debt of thegovernment-chartered housing finance companies Fannie Mae and Freddie Mac. But they nixed those...
  • WSJ: Systemic Political Risk - The Fannie Mae scandal - When it Raines, it pours.

    09/30/2005 6:06:48 AM PDT · by OESY · 6 replies · 1,041+ views
    Wall Street Journal ^ | September 30, 2005 | Editorial
    ...[I]nvestigators have uncovered even more accounting "irregularities" -- including overvaluation of assets, attempts to hide derivatives losses and the possible improper use of tax credits.... Which brings us to Mr. Oxley, the House Financial Services Chairman who is pressing a "reform" for Fannie and its sibling, Freddie Mac, that fails to address their core financial risks. His bill does nothing to reduce their huge portfolios of mortgage-backed securities (MBSs) and the derivatives they use to hedge those portfolios. Reducing their MBSs would dent their profitability. But a meltdown in their black-box hedging operations could have far worse consequences, and the...
  • WSJ: Mr. Oxley's Slush Fund - A Fannie Mae 'reform' far worse than current law.

    06/14/2005 5:24:09 AM PDT · by OESY · 3 replies · 485+ views
    Wall Street Journal ^ | June 14, 2005 | Editorial
    For the list of worst Congressional legislation ever, we have a new candidate: last month's debacle in the House Financial Services Committee on Fannie Mae and Freddie Mac. In the name of reforming these "government-sponsored" mortgage giants, the Members voted to make them even more financially dangerous, while grabbing a chunk of their profits for political payola to boot. Chairman Mike Oxley and friends voted to create a new "affordable housing fund" to the tune of $600 million or more a year. Already facing deserved criticism for being under-capitalized, Fannie and Freddie would have to dole out 5% of their...
  • White House warns of GSE risks... Fannie, Freddie enjoy perception of backing, Mankiw says

    11/07/2003 3:25:05 PM PST · by SierraWasp · 9 replies · 226+ views
    CBS MarketWatch.com ^ | 11/7/2003 | Matt Andrejczak
    White House warns of GSE risks Fannie, Freddie enjoy perception of backing, Mankiw saysBy Matt Andrejczak, CBS.MarketWatch.com Last Update: 4:50 PM ET Nov. 6, 2003 WASHINGTON (CBS.MW) - The notion that the U.S. government would bail out Fannie Mae and Freddie Mac if they ran into financial trouble "creates a source of systemic risk for our financial system," a top White House economic adviser warned Thursday. Fannie Mae (FNM: news, chart, profile) and Freddie Mac(FRE: news, chart, profile), government-sponsored enterprises created by Congress to help fund home mortgages, enjoy special privileges, such as lines of credit with the Treasury Department....
  • Freddie Mac's New Top Officer Wins Praise as Professional

    06/11/2003 10:23:15 AM PDT · by presidio9 · 25 replies · 381+ views
    THE WALL STREET JOURNAL ^ | Wednesday, June 11, 2003 | PATRICK BARTA and GREGORY ZUCKERMAN
    <p>On Wall Street, Freddie Mac's new chief executive, Gregory Parseghian, won quick praise as a financial pro who can restore credibility to the shaken mortgage behemoth.</p> <p>But it may well be in Washington, D.C., where the fate of Mr. Parseghian -- and of Freddie Mac -- is ultimately decided.</p>