Tuesday's Financial Winners & Losers
Freddie shares tanked by more than 28%, and fellow mortgage investor Fannie Mae (FNM) by nearly 25%, after the former reported a loss of $2 billion, or $3.29 a share. That's nearly triple the amount of last year's loss, which panned out at $1.17 a share.
In light of its dire cash levels, Freddie also said it might cut its dividend in half next quarter and that it's considering "very near term capital raising alternatives" with help from Goldman Sachs (GS) and Lehman Brothers (LEH).
Freddie slid $10.76 to $26.74 as Fannie traded down $9.33 to $28.25.A Fox-Pitt analyst meanwhile argued that, if the foundering Freddie and Fannie can't purchase Countrywide's (CFC) loans, the mortgage lender's viability of remaining in business will be placed in jeopardy. The analyst cut Countrywide to in line from outperform. Shares finished down 2.7% to $10.28. Citigroup (C) saw extremely heavy trading after a Deutsche Bank analyst said that the banking giant's foul-ups, as they regard to risk management and disclosure of subprime-related writedowns, could have opened up a can of regulatory worms. The analyst kept his sell rating on the bank, per the Associated Press, believing that a regulatory probe could be launched on Citi and that new restrictions might limit activities such as buyout pursuits.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV