Recent Blog Posts
-
The $4.5 Billion Dollar Bank Run
Nov 07 201111:20 am EDT -
The Times' Rorshach Geithner Story
Apr 27 20099:26 am EDT -
Sinking Animal Spirits
Apr 27 20098:45 am EDT -
Counter-cyclical Urban Policy
Apr 26 200910:00 am EDT -
Be Your Own Counterfeiter
Apr 26 20099:36 am EDT -
Being Tim Geithner
Apr 25 200912:37 pm EDT -
Notes From a Press Conference Naif
Apr 25 20099:41 am EDT -
What Good is the News?
Apr 25 20098:32 am EDT -
Stressful Enough
Apr 24 20092:29 pm EDT -
Not Regretting the Pound
Apr 24 20091:09 pm EDT
Links
- Felix Salmon
- DealBreaker
- Ryan Avent: The Bellows
- The Epicurean Dealmaker
- Chris Anderson
- Ultimi Barbarorum
- MarketBeat
- Michelle Leder
- John Quiggin
- The Panelist
- Andrew Leonard
- Streetsblog
- Brad Setser
- Michael Mandel
- Financial Crookery
- Kash Mansori
- Dean Baker
- Calculated Risk
- Free Exchange
- Curbed
- Lance Knobel
- Econospeak
- Carbon Tax Center
- Overcoming Bias
- Mark Thoma
- Naked Capitalism
- Alphaville
- Barry Ritholtz
- Alexander Campbell
- The Bayesian Heresy
- Brad DeLong
- DealBook
- Greg Mankiw
- Deal Journal
- FP Passport
- Carl Bialik
- Marginal Revolution
- A Fistful of Euros
- Dan Gross
Sep 09 2008 6:39pm EDT
Frannie Questions
Justin Fox asks for his readers' questions about the Frannie bailout. Since I'm in a more-questions-than-answers mood today, I'm happy to oblige:
- Fannie Mae and Freddie Mac are still publicly-listed companies. Does that mean they're still owned by their shareholders, and that unless and until the government actually dilutes those shareholders, management has a responsibility to work for the companies' actual owners, like Bill Miller?
- Why did Paulson choose to shelter the owners of Frannie's subordinated debt?
- Are Frannie's obligations now part of the US national debt? Will they be, if and when the US government becomes 80% owner of the companies?
- What is the difference between Frannie debt now and Frannie debt on Friday? Is there more of a government guarantee than there was? Is there any credit risk in Frannie debt? Does that credit risk explain the spread between Frannie debt and Treasuries?
- Is there option value to either Frannie equity or Frannie preferreds? How do you value a preferred share which isn't paying dividends? Who's buying this stuff, and why?
Feel free to add your own questions (or, better yet, answers) in the comments.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
500 Startups Hits New York