Fannie Mae, Freddie Mac may need $190 billion in big downturn: regulator
From the Reuter. What is the freaking liar in the world. For Bove Fannie Mae Stress Test A Farce. For whole story just google it. Below here some part of it.
Rafferty Capital’s #$%$ Bove published a research report today focusing on the fate of the Johnson Crapo bill and the real import of the news regarding Fannie Mae failing the “severe economic downturn” stress test. Bove highlights that the Johnson Crapo bill to wind down Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) appears very unlikely to emerge from the Senate Banking Committee, and that Fannie Mae could pass even the worst case stress test if the government wasn’t siphoning off its profits.
Johnson Crapo not going anywhere
According to Bove, barring a miracle revival, the much-bemoaned Johnson Crapo bill is dead on arrival. “The reality is that the sponsors of the Bill do not have the 16 votes necessary to get the vote out of committee. Plus, key liberal Senators do not support the legislation according to press reports. This means to all intents this Bill is dead. New legislation will have to be drafted in 2015 and it is unclear what that legislation might say.”
Bottom line keep your precious share if you can for best investment of the century duo the cook gov #$%$ up. IMHO.
As was pointed out, the government "stress tested" fannie's finances AFTER they confiscated at least 54 billion of their equity...that's about 10 billion over and above the bailout. Most companies would also have a hard time passing the "stress test" after forfeiting 10 billion dollars to the government. Banks would do much worse, if they handed over 10 billion to the government, they could not pass a urine test.