FREDDIE MAC

Freddie Mac said it swung to a second-quarter loss of $821 million, or $1.63 a share, after taking $2.5 billion in provisions for credit losses. Revenue fell to $1.69 billion from $2.34 billion. Analysts polled by FactSet Research had expected a loss of 38 cents a share.

The mortgage giant is going to cut its third-quarter dividend to 5 cents a share or less from 25 cents a share and pay the full preferred dividend.

 In addition, the company continues to review and consider other alternatives for managing its capital including issuing equity in amounts that could be substantial, reducing or rebalancing risk, slowing purchases into its credit guarantee portfolio, and limiting the growth or reducing the size of its retained portfolio. Estimated regulatory core capital was $37.1 billion at June 30, which represented an estimated $8.4 billion in excess of the company's statutory minimum capital requirement, Freddie Mac said.

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" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

``Home prices have declined and have hurt them as has the decrease in home sales,'' said Credit Suisse's, Moshe Orenbuch, the top-ranked analyst covering the company. ``What you need for this stuff to work it's way through is for homes to get through the foreclosure process and be sold.'' 

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Fair Value of Net Assets

The company's attribution of changes in fair value relies on models, assumptions and other measurement techniques that evolve over time.

At June 30, 2008, the fair value of net assets was ($5.6) billion as compared to ($5.2) billion at March 31, 2008, reflecting a net after-tax reduction of $0.4 billion. This change in fair value of net assets includes the payment of $231 million in preferred stock and $165 million in common stock dividends during the second quarter of 2008. Absent those dividend payments, the fair value of net assets at June 30, 2008 remained unchanged from March 31, 2008.

The investment activities resulted in a pre-tax $6.7 billion increase to fair value of net assets which was primarily due to core spread income of $4.9 billion, reflecting the reversal of mark-to-market impacts from previous periods as well as a $1.9 billion increase in fair value as a result of net mortgage-to-debt OAS tightening. These gains were offset by a pre-tax reduction of $6.2 billion in the fair value of the company's credit guarantee activities due to declining credit environment. 

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Angånde Fair value för fannie mae

See, in the first quarter of this year, Fannie Mae reported a $2.2 billion earnings loss. While that was a large figure, it doesn't seem like the kind of loss that would panic Wall Street (and in fact, the stock jumped 5% the day the loss was reported). Moreover, Fannie's reported book value (shareholder equity) was still around $39 billion, little changed from prior quarters. The problem comes when you dig deeper into Fannie Mae's 10-Q (specifically, Table 32), which indicates that the estimated fair value of Fannie Mae's net assets (shareholder equity) plunged from $35.8 billion at the end of 2007, to just $12.2 billion as of March 31, 2008. It is the likely deterioration since then that has led various observers to call Fannie Mae "technically insolvent."

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

från 28 juli

Looking Ugly

Here's where it gets tricky: On their fair-value balance sheets, Fannie and Freddie included adjustments to their deferred taxes that added billions of dollars to their asset values. Without the boosts, the companies' fair-value tallies would have looked even uglier.

...

Freddie said its other assets had a GAAP carrying value of $31.6 billion and a $42.5 billion fair value. By my calculations, using the methodology in Freddie's footnotes, it looks like Freddie wrote up the deferred-tax assets on its fair-value balance sheet by about $10.1 billion.

mvh spx970

Here's where it gets tricky: On their fair-value balance sheets, Fannie and Freddie included adjustments to their deferred taxes that added billions of dollars to their asset values. Without the boosts, the companies' fair-value tallies would have looked even uglier.

 mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Freddie Mac shares fall 19% in pre-open trade -

Fannie Mae shares fall 14% in pre-open trade -

Vi får se om  dem vänder uppåt... För det är inte första gången...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Att inte OMX reagerat något nämnvärt är ju anmärkningsvärt. 

"Lev för att lära så lär du dig att leva"

usa reagerar inte heller på hsb mac 

don't be a turkey
NNT

Freddie Mac CEO: credit worsened 'faster than we thought'

Freddie Mac can't predict when housing will recover...

Freddie CEO Syron: U.S. home price decline half-done

Freddie sees house prices falling 18-20% peak to trough

 mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

BKX

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Markanden tittar på olja...

U.S. gasoline supply down 4.4 mln brls
U.S. distillate supply up 2.8 mln brls
U.S. crude supply up 1.7 mln brls last week:

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

Vad är det som är konstigt med en uppskjuten skattefordran i redovisningen?

Förklara gärna det för mig. Om bolaget nu kan antas på sikt bedriva en lönsam business (är ju antingen det eller gå under helt som gäller) så kommer man ju att kunna utnyttja dessa avdrag. Även om de till synes nu blir gigantiska.

Sen ska vi inte gå in på FV accounting för det är ett ganska komplext område som också ger en hel del möjligheter att styra värden i redovisningen. Som påtalats av b la Meredith Whitney på Oppenheimer så finns det ingen bank som antar en så kraftig nedång i bostadspriserna som S&P:s Schiller futures indikerar nu.... oroande javisst. 

|StRY| "Caveat emptor. Buyer beware."

Från DI:   :-)

"There are two sides of the balance sheet from Freddie Mac. The left and the right side, on the left side there is nothing right, and on the right side, there is nothing left."

MVH Nisse45 

# 13

Men om det inget är kvar på högra sidan (kredit) så betyder det att alla skulder är borta vilket måste vara bra. ;-)

#12

Vad är det som är konstigt med en uppskjuten skattefordran i redovisningen? 

Var nån stans läser du att jag tycker att en uppskjuten skatteforddran är konstigt?

ja som du skriver... om vi antar att bolaget på sikt visar en lönsam business...

Frågan är när denna lönsamma business visar sig... vi får någ vänta minst 4 år... Om nu bolaget fortarande finns... tveksamt...

Åter till #5

Dream On

In its latest quarterly report, Fannie said ``we anticipate that it is more likely than not that our results of future operations will generate sufficient taxable income to allow us to realize our deferred tax assets.'' Hence, no valuation allowance.

Freddie gave a similar explanation in its July 18 registration statement with the Securities and Exchange Commission. The company also cautioned that ``if future events differ from current forecasts, a valuation allowance may need to be established which could have a material adverse effect on our results of operations and capital position.''

It's fishy enough to say no valuation allowances were needed under GAAP. Yet it seems beyond the pale to claim that, on a fair-value basis, their tax assets actually were worth more than what their regular balance sheets said. My guess is they're worthless now.

Brace yourselves, taxpayers. Uncle Sam soon may have to write a very large check. 

 

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#13 haha

#14 Det betyder också att det inte finns nå eget kapital. 

mvh

PS: Du som har AG-Pro kan kostnadsfritt testa min Rysslands-grupp.

Video

1) 080805

Fannie Mae and Freddie Mac, the two government-sponsored companies that hold about half of the mortgages in the U.S., continue to struggle. Armando Falcon, once their former regulator, says their struggle may be in vain.

..............................

2) 080806

Armando Falcon, a former head of OFHEO om Freddie

mvh spx970 

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

"There are two sides of the balance sheet from Freddie Mac. The left
and the right side, on the left side there is nothing right, and on the
right side, there is nothing left." 


:-D 

Vh Björta

#15 "Var nån stans läser du att jag tycker att en uppskjuten skatteforddran är konstigt?"

Tyckte mig se en sådan antydan i #5 "Looking ugly". Men sen insåg jag att du ju inte yppar några egna debattbara åsikter utan länkar och citerar ;) Så då vet jag inte vem jag ska föra debatt med. Kan väl försöka maila dina källor under länkarna =D 

 

|StRY| "Caveat emptor. Buyer beware."

#19

Om du läser ordentligt så föstår man att jag var mest intreserade av F/F, fair value  och hur man försöker manipulera siffran på olika sätt...

#4 ch #5

Nästa gång läs länkerna innehål innan du kommenterar, för dem kan vara till hjälp...

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

#20 Läste länkarna. Blandas friskt mellan entstöriga tokjönsar och bra läsvärda skribenter.

FV är intressant ämne. För färna upp en egen diskussion i ämnet så skall kan vi få en intressant sträng. Dock är det inte aldeles lätt att genomföra mark-to-market i detta klimat, skall sägas till bolagens försvar. Och något som man kunde diskutera är ju faktiskt hur korrekt på sikt som det market price vi ser på många skuldinstrument nu är. Där de går under sitt instinkta värde pga likviditetskris och frusna marknader.

 

|StRY| "Caveat emptor. Buyer beware."

Paulson Says No Plans to Add Cash to Fannie, Freddie

Paulson, the former chairman of Goldman Sachs Group Inc., said he won't remain as Treasury secretary after President George W. Bush's term ends in January, regardless of who is elected president in November.

``I'm going to run right up until the end,'' said Paulson, 62, who joined the Bush administration in July 2006, succeeding John Snow. ``I will do everything I can to make for a smooth transition, to work closely with my successor here in Treasury.''

``We have got some serious issues that we're dealing with in our economy,'' he said. ``I believe it's going to take us well beyond the end of the year to work through all the housing problems.''

 mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

video här

Meet The Press: Treasury Secretary Henry Paulson 

...

eller här

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Inlägget är redigerat av författaren.

The Endgame Nears For Fannie and Freddie

Similarly, the balance sheets of both companies have been destroyed. On a fair-value basis, in which the value of assets and liabilities is marked to immediate-liquidation value, Freddie would have had a negative net worth of $5.6 billion as of June 30, while Fannie's equity eroded to $12.5 billion from a fair value of $36 billion at the end of last year. That $12.5 billion isn't much of a cushion for a $2.8 trillion book of owned or guaranteed mortgage assets. 

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

Fannie, Freddie `House of Cards' Prompts Government Takeover

``Once they got someone looking closely at Fannie and Freddie's books, they realized there just wasn't adequate capital there,'' U.S. Senator Richard Shelby of Alabama, the ranking Republican on the Senate Banking Committee, said after a briefing by Treasury officials. ``They found out they had a house of cards.''  

...

``Fannie and Freddie's accounting during the housing crisis appears to have been more fantasy than reality,'' said Rosner, who first highlighted problems in 2003, before the two companies were forced to restate about $11.3 billion in earnings. ``

mvh spx970

" Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful." Warren Buffet

källa: The New York Times
Upplagd av Gekko kl. 9/09/2008 06:56:00 AM

Vd:n Richard Syron på Freddie Mac har erhållit 38 miljoner dollar i bonusar och optioner sedan 2003. Hans föregångare Leland C. Brendsel kammade hem 28,4 miljoner dollar mellan åren 1993 till 2003.

Vd:n Daniel Mudd på Fannie Mae har erhållit 12,4 miljoner dollar i kompensationer sedan han blev Vd 2004. Hans föregångare Franklin D. Raines cashade hem över 52 miljoner dollar mellan åren 1999 till 2004

Några investment banker har även cashat hem på Fannie Mae och Freddie Mac. 2007 betalade dessa två bolag 1,5 miljader dollar i fees . I år är siffran nere på 600 miljoner dollar.

De senaste åren har även Freddie Mac och Fannie Mae lagt ut 94,8 respektive 79,5 miljoner dollar på "lobbying services".

Vh Björta