WASHINGTON — Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said.
That's gonna be $800 BILLION of YOUR MONEY, America!
To BAIL OUT a PRIVATE COMPANY!!!!
The plan, which would place the companies into a conservatorship, was outlined in separate meetings with the chief executives at the office of the companies’ new regulator. The executives were told that, under the plan, they and their boards would be replaced and shareholders would be virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.
Do I detect a whiff of fascism in the air?
And when they say the "government" stands behind the debt, that means YOUR WALLET, TAXPAYERS!!!!!!
It is not possible to calculate the cost of any government bailout, but the huge potential liabilities of the companies could cost taxpayers tens of billions of dollars and make any rescue among the largest in the nation’s history.
Under a conservatorship, the common and preferred shares of Fannie and Freddie would be reduced to little or nothing, and any losses on mortgages they own or guarantee could be paid by taxpayers.
As their problems have deepened — and the marketplace has come to expect some sort of government rescue — both companies have found it difficult to raise new capital to absorb future losses.
Do you smell SOCIALISM, Amurkns? Where is YOUR RESCUE from the government?!?
All you got was a $600 bribe, er, kickback, er, tax "rebate" (that you have to pay back next year, with interest)!!!!
How does it feel to have a soft-serve swirley dumped into the palm of your hand, America?
Senior officials have been critical of top executives at the companies, particularly Freddie Mac. They have raised concerns about major risks to taxpayers of a bailout of companies whose executives have received huge compensation packages. Mr. Syron, for instance, collected more than $38 million in compensation since he joined the company in 2003.
It's called LOOTING, NYT!
After stock markets closed on Friday, the shares of Fannie and Freddie plummeted. Fannie was trading around $5.50, down from $70 a year ago. Freddie was trading at about $4, down from about $65 a year ago.
Translation: The stock about worth a soft-serve swirley.
With Fannie and Freddie guaranteeing $5 trillion in mortgage-backed securities, and a big share of those held by central banks and investors around the world, Mr. Paulson appears to have decided that the stakes are too high to take chances.
Oh, so it is ANOTHER BANK BAILOUT, that's all!!!!
Amazing how they can't cut a check to keep you in your home though, huh, 'murkns?
But you just keep on taking it, so fuck you, too!!!!