Freddie Mac(FMCC)- OTCQB
  • Fri, Apr. 15, 2:25 PM
    | Fri, Apr. 15, 2:25 PM | 99 Comments
  • Tue, Apr. 12, 1:21 PM
    • In a deposition taken last summer, former Fannie Mae (OTCQB:FNMA +11.5%) CFO Susan McFarland recounts telling high-level Treasury officials on August 9, 2012 that the company was "now in a sustainable profitability," and a presentation now unveiled shows 10 years of internal projections indicating no need for further government assistance.
    • Just over a week after that meeting, Treasury announced the profit sweep for Fannie and Freddie (OTCQB:FMCC +8.6%).
    • McFarland, in last summer's deposition, says she believes that August 2012 meeting propelled the government to quickly change the terms of Fannie's and Freddie's bailouts to put in place the seizing of any profits.
    • McFarland: "It was probably a desire not to allow capital to build up within the enterprises and not to allow the enterprises to recapitalize themselves.”
    • Source: NYT
    • Now read: Double Bind FHFA Legal Arguments Undermining Ownership Rights Set To Collapse (April 11)
    | Tue, Apr. 12, 1:21 PM | 65 Comments
  • Thu, Mar. 3, 4:22 PM
    • In upholding a district court ruling that the GSEs are private companies, the 9th Circuit Court of Appeals may have just handed the Delaware GSE cases to the plaintiffs, writes Todd Sullivan.
    • The defendants (the government) had argued that Fannie Mae (OTCQB:FNMA +6.8%) and Freddie Mac (OTCQB:FMCC +6.5%) are "federal instrumentalities," and thus federal law, not state law governs the conservator's power. Plaintiffs, on the other hand, argued the two are Delaware companies ruled by Delaware law, where the net worth sweep is illegal.
    • "The government here," says Sullivan, "is between a rock and a hard place."
    | Thu, Mar. 3, 4:22 PM | 36 Comments
  • Oct. 19, 2015, 3:29 PM
    • "The right answer is not to 'recap and release' as some say," said Treasury Secretary Jack Lew. "Recap and release" is the idea the government would allow Fannie Mae (OTCQB:FNMA -6.4%) and Freddie Mac (OTCQB:FMCC -6.1%) to retain their earnings (rather than sending the money to the Treasury), eventually building up enough capital to return in full to the private sector.
    • "The notion that the slate is clean is just not correct," says Lew, rejecting the idea the government has been paid back and more its $188B in bailout funds. Taxpayers, he says, are still on the hook for all the risk assumed by the GSEs.
    | Oct. 19, 2015, 3:29 PM | 57 Comments
  • Aug. 31, 2015, 2:36 PM
    • The "thin reed" upon which speculation of movement towards a settlement rests, writes John Carney, is a request by lawyers from the Office of White House Counsel for access to heavily redacted documents. While the government didn't explain the reasons for the motion, the involvement of this set of lawyers (instead of the DOJ attorneys working the case) has lead some to believe the Administration wants to settle.
    • If the White House wanted to settle, says Carney, DOJ lawyers would almost certainly handle the negotiations, meaning no need to bring in another set of attorneys. Instead, continues Carney, it's standard procedure for White House lawyers to review information in litigation referencing the White House.
    • Carney: "The government has scored victories at almost every turn in the Fannie-Freddie litigation, giving it little motivation to seek a truce now."
    • Nevertheless, Fannie (OTCQB:FNMA +5.3%) and Freddie (OTCQB:FMCC +5.5%) continue to rally.
    | Aug. 31, 2015, 2:36 PM | 33 Comments
  • Aug. 4, 2015, 11:12 AM
    • Q2 comprehensive income of $3.9M vs. $746M in Q1. Net interest income of $4M vs. $3.6M. Derivative gains of $3.1B vs. a loss of $2.4B in Q1.
    • The company will write a check to Treasury for $3.9B, bringing the total paid to $96.5B. The draw (not reduced by any payments made) remains at $71.3B.
    • Single-family purchase volume of $101.2B up about $20B from Q1. Multifamily purchase volume of $13.1B up more than 30%.
    • Full results
    • Previously: Freddie Mac reports Q2 results (Aug. 4)
    • OTCQB:FMCC +6%, Fannie Mae (OTCQB:FNMA +5.5%)
    | Aug. 4, 2015, 11:12 AM | 11 Comments
  • Jul. 15, 2015, 8:56 AM
    • Opening up the Delivering Alpha conference, Bill Ackman says the possible upside in Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) make them two of the most interesting companies on his radar.
    • FNMA +3.1%, FMCC +4.1% premarket
    | Jul. 15, 2015, 8:56 AM | 20 Comments
  • Jun. 15, 2015, 3:48 PM
    • "We think this knee-jerk reaction is short-sighted," says KBW's Brian Gardner, reacting to the jump in the stock prices of Fannie Mae (OTCQB:FNMA +2.6%) and Freddie Mac (OTCQB:FMCC +2.3%) following the government's loss in the AIG bailout case. Gardner reminds that the GSEs are federally-created entities operating under federal charters, giving the government stronger legal cover for its bailout.
    • Compass Point's Isaac Boltansky notes the AIG case and GSE case are based on entirely different statutes, making the implications for the GSEs "limited at best."
    • Previously: Judge rebukes government in AIG case (June 15)
    • Previously: Fannie Mae and Freddie Mac on the move after Greenberg wins AIG suit (June 15)
    | Jun. 15, 2015, 3:48 PM | 22 Comments
  • Jun. 15, 2015, 12:08 PM
    | Jun. 15, 2015, 12:08 PM | 52 Comments
  • Feb. 17, 2015, 10:15 AM
    • A weekend piece in the NYT brings to light the extraordinary secrecy claims the government is making to prevent it from having to produce documents concerning the decision to expropriate all profits of Fannie Mae (OTCQB:FNMA +12%) and Freddie Mac (OTCQB:FMCC +13.6%) in late-summer 2012.
    • At issue is exactly what the Obama administration - in the midst of an election battle and eyeing surprise profits at the GSEs - had in mind when it altered the bailout agreement and ordered the sweep.
    • More fuel: Hank Greenberg's suit against the government over the AIG could be tilting in his favor. The "Greenberg Trade," says Charlie Gasparino, is a favorite of money managers betting that if Greenberg wins, it bodes well for those fighting the government over Frannie.
    • The two stocks are higher by more than 30% over the past couple of sessions.
    | Feb. 17, 2015, 10:15 AM | 28 Comments
  • Dec. 17, 2014, 11:30 AM
    • Appearing on Bloomberg TV, Bill Ackman says he added "meaningfully" to his positions in Fannie Mae (OTCQB:FNMA +6.8%) and Freddie Mac (OTCQB:FMCC +6.5%) last week.
    | Dec. 17, 2014, 11:30 AM | 15 Comments
  • Nov. 19, 2014, 11:50 AM
    • "Everyone agrees that conservatorship cannot continue forever," says Senator Tim Johnson in prepared remarks for a Senate Banking Committee hearing on the GSEs. "If Congress cannot agree on a smooth, more certain path forward, I urge you, (FHFA) Director Watt, to engage the Treasury Department in talks to end the conservatorship.”
    • Watt: "Conservatorship cannot, should not be a permanent state."
    • Fannie Mae (OTCQB:FNMA +10.6%), Freddie Mac (OTCQB:FMCC +9%)
    | Nov. 19, 2014, 11:50 AM | 17 Comments
  • Nov. 6, 2014, 10:13 AM
    | Nov. 6, 2014, 10:13 AM | 6 Comments
  • Oct. 3, 2014, 1:09 PM
    | Oct. 3, 2014, 1:09 PM | 16 Comments
  • Oct. 2, 2014, 9:59 AM
    • The 52-page ruling from U.S. District Judge Royce Lamberth "meticulously demolishes" every argument made by investors claiming Treasury and the FHFA acted illegally when altering Fannie Mae's (OTCQB:FNMA -10%) and Freddie Mac's (OTCQB:FMCC -7.3%) bailout agreement in 2012.
    • The new agreement, says Lamberth, is clearly within the bounds of authority Congress granted in 2008 when passing a law overhauling oversight of the GSEs.
    • Yes, Lamberth's ruling doesn't directly affect the dozens of other pending lawsuits, but now plaintiff's attorneys will have to start out explaining how Lamberth got things wrong.
    • Previously: Fannie and Freddie plunge after investor lawsuit dismissed
    | Oct. 2, 2014, 9:59 AM | 31 Comments
  • Oct. 1, 2014, 9:46 AM
    • The first among about 20 cases still to be decided, a U.S. Federal judge rejected investor claims, and found the government's 2012 amendment helping itself to nearly all Fannie Mae (OTCQB:FNMA -34.9%) and Freddie Mac (OTCQB:FMCC -33%) profits is kosher.
    | Oct. 1, 2014, 9:46 AM | 15 Comments
Company Description
Freddie Mac was chartered by Congress in 1970 with a public mission to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing. The company's statutory mission is to provide liquidity, stability and affordability to the U.S.... More
Sector: Financial
Industry: Savings & Loans
Country: United States