Roberta's Las Vegas Real Estate Blog: Las Vegas Real Estate News... Fannie Mae - Freddie Mac Takeover this weekend?

Las Vegas Real Estate News... Fannie Mae - Freddie Mac Takeover this weekend?

Reports are flying across the media that the expected federal takeover of the 2 mortgage giants will be happening as soon as this weekend. The plan calls for dismissing top execs and boards and placing one if not both under conservatorship. Common stock would be diluted, other securities including preferred shares would be protected by the government. The aim is to stabilize the US mortgage industry by shoring up these giants that hold or guarantee nearly 50% of the market.

Reports also indicate that cash infusions to the lending giants would be done quarterly on an as needed basis, rather than a lump sum, hoping to minimize costs of the bailout. Treasury Secretary Henry M. Paulson Jr. was said to have orchestrated the plan, and was accompanied to a meeting with both boards and execs by Fed Chair Ben Bernanke and Director of Housing Finance regulator James
Lockhart.

One article found here in The Washington Post. Another here at Bloomberg.

UPDATE 09/07: They did complete the takeover and the Asian markets appear to be responding well to the news. What had been all negatives at the Friday close are all in positive territory. At the moment, Japan's Nekkei is +437, Hong Kong Hang Seng +770, and all 3 Aussie ASX are up a similar 3-4% range. Have to see if the European markets follow suit when they open. The idea of this takeover was to restore confidence in the financial markets and draw new investment. S&P has affirmed the AAA bond rating for both. The thought is that there should be an increase in investment and a lowering of mortgage rates, with some forcasting low to mid 5%'s. If that happens it would be good for the industry and for consumers.

 

If you are interested in relocating to Las Vegas or would like information on Las Vegas real estate, please email me roberta@search4lasvegashomes.com or call me at 702-354-8988. I look forward to hearing from you!

 

 

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Comment balloon 4 commentsRoberta LaRocca • September 05 2008 10:27PM

Comments

very interested thanks for the post. 

Posted by Jeff Rogers (retired) about 11 years ago

Roberta I really like your AR page I was in Vegas for the first time back in July and certainly not my last.  Your page fits the city say cool!

P.s. hope you don't mind I have to use that tag about if you are interested in .....of course will customize it for the big city of Mauldin, Sc lol

Posted by Leeshay Wright (Keller Williams Realty) about 11 years ago

Jeff: Yes, it should be interesting. The financial markets can sure use some stability.

Leeshay: Thanks! Glad you enjoyed your visit....this place is addicting, and it keeps growing even better! Sure, customize away!

Posted by Roberta LaRocca, REALTOR®, Broker, Salesperson, Property Management (Simply Vegas Real Estate) about 11 years ago

Updated the original post, see above.

 

Posted by Roberta LaRocca, REALTOR®, Broker, Salesperson, Property Management (Simply Vegas Real Estate) about 11 years ago

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