Tuesday, August 19, 2008

Freddie Balance Sheet: Godfather Edition

Fredo, like Freddie, is the "little brother" that tried to do well. All either of them wanted was a little love. The result?

Michael Corleone:

Fredo, you're nothing to me now. You're not a brother, you're not a friend. I don't want to know you or what you do. I don't want to see you at the hotels, I don't want you near my house. When you see our mother, I want to know a day in advance, so I won't be there. You understand?
Barron's: The Endgame Nears for Fannie and Freddie:
It is growing increasingly likely that the Treasury will recapitalize Fannie and Freddie in the months ahead on the taxpayer's dime, availing itself of powers granted it under the new housing bill signed into law last month. Such a move almost certainly would wipe out existing holders of the agencies' common stock, with preferred shareholders and even holders of the two entities' $19 billion of subordinated debt also suffering losses.
We all know what happened to Fredo. Isn't it time we put Freddie out of his misery?

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