Re: [A-List] US economy : Fannie and Freddie slide

["annewilliamson" <annewilliamson@xxxxxxx>]

EXACTLY!

----- Original Message -----
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: <a-list@xxxxxxxxxxxxxxxxxxx>
Sent: Monday, March 10, 2003 12:29 PM
Subject: Re: [A-List] US economy : Fannie and Freddie slide


> CREDIT DERIVATIVE EXPOSURE!
>
> Sabri Oncu wrote:
> > Henry, Anne,
> >
> > What the heck is happening at Freddie and Fannie, do you know?
> >
> > Sabri
> >
> > +++++++++++++++
> >
> > Top Financial News
> >
> > 03/10 11:53
> > U.S. Stocks Fall as Fannie Mae, Freddie Mac Shares Decline
> > By Scarlet Fu
> >
> >
> > New York, March 10 (Bloomberg) -- U.S. stocks fell, led by
> > financial shares, after a Federal Reserve official said mortgage
> > financiers Fannie Mae and Freddie Mac lack adequate capital,
> > posing a risk to the economy.
> >
> > Stocks also slid on concern that a U.S.-led strike against Iraq
> > will take place within weeks.
> >
> > "What we're seeing on the corporate front is reinforcing fears of
> > a slowdown," said Bob Sitko, a money manager at USAA Investment
> > Management Co., which oversees $25 billion in San Antonio. "The
> > duration of this Iraq overhang has in itself perhaps caused
> > damage that will take longer to repair. It's putting us on hold"
> > to make a bet on stocks.
> >
> > The Standard & Poor's 500 Index shed 15.92, or 1.9 percent, to
> > 812.96 as of 11:52 a.m. in New York. All 81 financial shares in
> > the index declined, contributing more than a quarter of the loss.
> > The Dow Jones Industrial Average fell 117.23, or 1.5 percent, to
> > 7622.80. The Nasdaq Composite Index slipped 22.46, or 1.7
> > percent, to 1282.83.
> >
> > The U.S. may delay asking for a UN Security Council vote
> > scheduled for tomorrow to authorize disarming Iraq by force until
> > later in the week, the New York Times said, citing unidentified
> > White House officials who spoke yesterday.
> >
> > Still, Secretary of State Colin Powell said yesterday the U.S. is
> > close to securing the support of nine Security Council members
> > needed to pass the resolution. The probability of war "is rapidly
> > increasing," Powell said on Cable News Network's "Late Edition."
> >
> > More than two stocks fell for every one that rose on the New York
> > Stock Exchange and the Nasdaq Stock Market today. Some 453
> > million shares traded on the NYSE, down 1 percent from a week
> > ago.
> >
> > Fannie, Freddie Slide
> >
> > Fannie Mae slid $3.78 to $59.50, while rival Freddie Mac dropped
> > $3.27 to $50.73. St. Louis Federal Reserve President William
> > Poole said they may not be sufficiently capitalized to weather a
> > financial shock and pose a risk to the financial system and U.S.
> > economy.
> >
> > Neither is backed by the credit of the U.S. government and they
> > "hold capital far below that required of regulated banking
> > institutions," Poole said in a speech to an Office of Federal
> > Housing Enterprise Oversight meeting. He added that the
> > government should make clear it doesn't back the firms.
> >
> > <SNIP>
> >
> >
> >
>
>
>
>