Financial Winners & Losers

Tuesday's Financial Winners & Losers

 

Financial stocks suffered a furiously traded bloodbath Tuesday afternoon following Freddie Mac's (FRE) announcement of an enormous third-quarter loss.

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.

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,393.45 1,310.33 2,827.34 15.81
Oil *
101.78
DOWN
26.41
DOWN
2.99
DOWN
10.02
DOWN
0.44
10 Yr
1.58%
SPDR Gold
151.62
-0.21%
-0.23%
-0.35%
-2.71%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet