Report: Treasury Will Inject Capital Into Fannie, Freddie

Hosing the shareholders is not the route to choose. Leaving the shareholders holding an empy bag by diluting shares or wiping out their interests in Fannie and Freddie would not be a very wise. It would only create additional problems. Choosing this path would be very surprising to me. Punishing the ones who are responsible would be the ethical route. Don't hose the shareholders.

Yeak! Incompetent Washington official that's going to cost hardworking American to pay for irresponsible home buyer and possibly greedy crooks.

Gross manipulation is more like it. How dies bankrupting 16B worth of common shareholders help this company's mortgage paper problems baffles me, especially since common stock these companies is nickels and dimes. I think the people who had faith in FNM or FRE regardless of race color creed or color of investment capital, ought to be protected, otherwise, why invest in GSE on any level other than BONDS? Plus, the whole PIMCO relationship with shorting the common smells, Gross added $12B to PIMCO coffers last year shorting financials, which really "helps" when Greenspan is on the PIMCO payroll--so I don't have any sympathy for them. The little guy who believes scapegoated his common holdings, when the mortgage no doc liar loan paper was made by the company, not the investors in the common? 16B in common, about a month's expenditure for Iraq. We're better than wiping out the little guy and letting the Mozilla's of the world, Countrywide in this case, escape with half a BILLION. Get the big guys, not the little guys. We're better than this. Or should be.

Agree. The little guy had faith, and is only in 16 Billion, chump change. Save the shareholders who had faith. You may need them other GSE. You never know.

Seems like you guys are still holding these GSE stocks???? Total Madness!!! These companiese are worthless.....PIMCO, Buffett, Jim Rogers, "Mad" Cramer, have said time and time again these GSE are worthless...... why still keeping them? It is best to move on, and let the market deal with it. You are not the only one losing money, you know.

Why bail out Fredie and Fannie.....Why not Bail out those with mortgage with Freddie and Pannie instead.or Freeze thier interest for ten years.As good said charge no interest what interesting is BAIL THEM OUT DURING THE YEAR OF JUBILEE.........Why not adopt the Lord Almighty system in our land.....Will the economy recover in this way.....I believe so.....It will recover.....The trouble is our financer,our lender dont like it...How about the government....Mostly dont like it....Will it be possible......Yes if try.....God say do it....God has a good reason for it which you and I can not see. Will it work ....Yes is my answer......Because I trust the Lord God....How about lender....If they are wise .....Why not follw the command of the Lord.....Why .....it will work wonders which No one yet see......Please try.......

The whole thing does stink! I'm wondering when someone will finally crackdown on the S&P ratings agency. As little as a month ago they had the preferred shares rated AA-. I've seen this happen time and time again. I would challenge anyone to find more than a handful of corporate debt rated higher. It's a joke. Don't they realize that senior investors rely on and trust those ratings when buying fixed income investments? If they can be bought on the open market daily then the S&P has a duty to provide an honest rating daily. It doesn't make sense if they let the preffereds tank because the largest owners are the banks they are trying to help.

It's unbelieveable that the PIMCO front man can lean on Ben & Hank to move quicker as he has positions that are underwater. Qtr & yr ends a coming and a profit must be earned I mean turned, so citizens pony up Bill needs a fix right quick. Sad part is he most likely gets it delivered

All those "concerned" about the little guys are probably quietly trying to unload their own shares of the toxic crap called GSE. NOBODY MADE the little guys to buy stock of those companies as well as nobody made Gross to buy their bonds. And actually by buying this crap the Grosses and little guys enabled FMs and other mortgage lenders to get us in this mess. So, I say - screw them now. Let them, not the taxpayers pay for their greed, irresponsibility and mistakes. They had a choice - the taxpayers don't. They could stay away from this garbage, but a taxpayer cannot say no to IRS. Should my taxes also save shareholders who had faith in Pets.com? How about K-Mart? Enron? So spare us of your hypocritical 'concerns' about the little guys, sell your FMs stock, take a loss and admit that you made a stupid decision and your greed got ahead of your fear. And most importantly - STOP PRETENDING THAT YOU SOMEHOW BENEFITED THE SOCIETY BY BUYING FNM and FRE crap.

All those "concerned" about the little guys are probably trying to quietly unload their own shares of the toxic crap called GSE. NOBODY MADE the little guys to buy stock of those companies as well as nobody made Gross to buy their bonds. Actually, by buying this crap the Grosses and little guys enabled FMs and other mortgage lenders to get us into this mess in the first place. So, I say - screw them now. Let them, not the taxpayers, pay for their greed, irresponsibility and mistakes. They had a choice - the taxpayers don't. They could stay away from this garbage, but a taxpayer cannot say no to IRS. Should my taxes also save shareholders who had faith in Pets.com? How about K-Mart? Enron? So spare us of your hypocritical 'concerns' about the little guys, sell your FMs stock, take a loss and admit that you made a stupid decision and your greed got ahead of your fear. And most importantly - STOP PRETENDING THAT YOU SOMEHOW BENEFITED THE SOCIETY BY BUYING FNM/FRE GARBAGE.

I thought I read somewhere that Congress only gave Treasury authority for $25 billion capital injection, not $800 billion. Am I right? Also, it's outrageous that Bill Gross would advocate a govt action when the guy bought tons of agency debt and is going to profit handsomely if that debt is explicitly backed by govt. If that's not manipulation, I don't know what is.

With all respect yahoo editor you made my point. It is fine to call the common of these GSE's crap, and I own nothing. My mothers does. A month ago the preferred was rated AA- by the S&P, and today still carried an investment grade rating. Have you read the defintion of those ratings? It's bullshit. She wasn't looking to make a big score she narrowed her search down by rating. Do you know how many publicly available pieces of corporate paper carry a AA- rating or better? A few. Citi didn't, and Bank of America didn't. GE is the only other piece of corporate debt she owned a month ago with a higher rating.

Im short 15 futures of S&P futures by mistake at the end of today. Anybody knows how this article will afect the markets at the opening on monday?? Thank you very much.

Your exactly right. PIMCO is already cashing in on the increased spreads caused by the Gross's bashing and S&P downgrades. No matter what, the security holders (like PIMCO) don't get wiped out, they get their money back. I think we are going to see something creative from the feds. Something like the treasury buying 25 billion worth of the GSE's Alt-A and Sub Prime mortgage backed securities for a reasonable spread. That would give the GSE's some breathing room and the government could make some money off the deal. It would mean that there wouldn't be any more auctions for a while so Gross wouldn't be making any more money. It would also save the shareholders, which by the way are mostly institutions and retirement mutual funds.

Does anyone not remember that 2 weeks ago, Barron's, owned by the WSJ, also stated that a "reliable" source at the Treasury told them a Treasury decision was "imminent." Didn't happen then so do we think this is real this time?

In case the article is true. How can affect the opening of S&P futures on Monday??

The biggest point is the authority to do anything doesn't happen till 1 October. Bill Gross isn't losing anything on the GSE's. He's buying Fannie and Freddie like crazy because of the increased spreads that he his hired gun Greenspan caused. He making so much money he's starting a new fund so he can buy more. I think Gross wants to see the GSE's nationalized for several reasons: 1. The run by investors would further increase the spreads. 2. The 5 Trillion worth of toxic waste dumped on the fed would destablize US backed securities and get him increased spreads there too. 3. Breaking up the GSE's into smaller privately controlled companies would give PIMCO an opportunity to buy control. Gross would then make money off of issuing bonds instead of just buying them. Hank and Ben are too smart to be outsmarted by these guys. I can't see them buying stock since the constant bashing would just let the shorts would just bleed it back out. I think they are going to get very "Creative" and maybe buy 25 Billion worth of toxic securities at privately held, government only GSE auctions. That way they could offer a lower spread, infuse the capital and in the long run make money off the deal. That would leave shareholders in tact too. I also think they will use FHA, VA and Farm to refi Alt-A, Sub Prime, and ARM loans held by the GSE's to 30 year fixed. That would take a lot of that bad paper off the books and give homeowners a fixed mortgage payment. None of this would actually help the banks or the GSE's directly, but it would help the markets.

The biggest point is the authority to do anything doesn't happen till 1 October. Bill Gross isn't losing anything on the GSE's. He's buying Fannie and Freddie like crazy because of the increased spreads that he his hired gun Greenspan caused. He making so much money he's starting a new fund so he can buy more. I think Gross wants to see the GSE's nationalized for several reasons: 1. The run by investors would further increase the spreads. 2. The 5 Trillion worth of toxic waste dumped on the fed would destablize US backed securities and get him increased spreads there too. 3. Breaking up the GSE's into smaller privately controlled companies would give PIMCO an opportunity to buy control. Gross would then make money off of issuing bonds instead of just buying them. Hank and Ben are too smart to be outsmarted by these guys. I can't see them buying stock since the constant bashing would just let the shorts would just bleed it back out. I think they are going to get very "Creative" and maybe buy 25 Billion worth of toxic securities at privately held, government only GSE auctions. That way they could offer a lower spread, infuse the capital and in the long run make money off the deal. That would leave shareholders in tact too. I also think they will use FHA, VA and Farm to refi Alt-A, Sub Prime, and ARM loans held by the GSE's to 30 year fixed. That would take a lot of that bad paper off the books and give homeowners a fixed mortgage payment. None of this would actually help the banks or the GSE's directly, but it would help the markets.

If it wasn't for the damn press we'd most likely not even be in this situation. Too much talk with a bunch of heard mentality minded people listening to every word. Why are we in this mess in the first place! Obvious that the current administration has left the common stockholder without a paddle once again! If they think this will resolve the situation on hand then they are sadly mistaken. It's going to take much more. Let's see how this ends up turning out. I doubt anyone but big business will end up profiting as usual.

Im short 15 futures of S&P futures by mistake at the end of today. Anybody knows how this article will afect the markets at the opening on monday?? Thank you very much.