Fannie, Freddie Get More Hedge Fund Love
Kashkari was somewhat more sympathetic to the argument that small banks had initially been encouraged by the government to buy Fannie and Freddie preferred securities before eventually getting wiped out on these investments when the Treasury decided to stop paying their dividends.
"I can understand that perspective, but everything had a timing and a sequencing," he said, before adding, "No one was making any promises that those
Kashkari said that while he "hasn't studied" the question about whether the preferred shares may eventually recover their value, he would be "very surprised if they're worth anything," since they still owe the government more than $150 billion between them.
"The Federal government still looks like it's going to take a net loss, which means shareholders should get wiped out completely."-- Written by Dan Freed in New York.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV