The Fannie Mae and Freddie Mac poker game is progressing…their chip stacks have diminished substantially but Freddie appears to be calling in a credit marker from the House…
We’ve seen The Flop…which may have been initiated by the Financial Accounting Standards Board almost 6 months ago.
From yesterdays post:
If I’m reading the table correctly, Fannie and Freddie’s stock is plummeting because stock holders are staring at the prospect of getting diluted by capital infusions (for a number of reasons) and dumping accordingly.
Now The Turn…
Read today over at Blown Mortgage:
…Freddie Mac, is mulling a possible $10 billion equity round to raise capital…
I don’t know how you raise that much cash at such a terrible stock price without completely diluting the hell out of the rest of the shareholders; but onward I say.
Is it me, or does this seem a bit contrived? Stay tuned for The River…
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