Investors are getting nervous about mortgage repurchasers Fannie Mae and Freddie Mac's exposure to subprime mortgage loans and collateral damage from delinquencies and foreclosures on prime loans.
The six-month chart at left (click to enlarge) shows Fannie and Freddie's stock prices are beginning to follow those of Angelo Mozilo's troubled Countrywide Financial down. (Fannie, in red, is down about 35 percent since June, while Freddie, in blue, has lost nearly 40 percent in value. Both stocks started to go downhill in October. Countrywide, in green, got a head start and has lost about 70 percent. For a current comparison from Yahoo! Finance, click here.).
How do I get job like this? - The results ($2 billion 3rd Qtr. Loss) came less than two weeks after Freddie extended the contract of Chairman and CEO Richard Syron through 2009, raised his base salary to $1.3 million from $1.1 million and awarded him a $3.5 million "extension bonus." His total compensation last year was $14.7 million. Click here for the story
For more on how that might worsen the credit crunch, click here!
Update:
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