Paulson gave advance warning of Freddie, Fannie failures

NoOneLikesUs · Nov 29, 2011

http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html

The fund manager who described the meeting left after coffee and called his lawyer. The attorney’s quick conclusion: Paulson’s talk was material nonpublic information, and his client should immediately stop trading the shares of Washington- based Fannie and McLean, Virginia-based Freddie.

Seven weeks later, the boards of the two firms voted to go into conservatorship under the newly created Federal Housing Finance Agency. The takeover was effective Sept. 6, a Saturday, and the companies’ stock prices dropped below $1 the following Monday, from $14.13 for Fannie Mae and $8.75 for Freddie Mac (FMCC) on the day of the meeting. Various classes of preferred shares lost upwards of 85 percent of their value.
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Shouldn't this be a big fucking deal?

LongTimeListener · Nov 29, 2011

If the SEC had balls, they'd issue subpoenas for all records to determine if any of the invited parties shorted any shares after that meeting. Of course, as we saw once again yesterday when the judge rejected the Citigroup settlement and the SEC lawyer nearly wet himself in defense of Citigroup, the SEC has no balls.

Pancamo · Nov 29, 2011

Didn't Martha Stewart go to jail for something similiar?

trifectarich · Nov 29, 2011

NoOneLikesUs said:

http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html

The fund manager who described the meeting left after coffee and called his lawyer. The attorney’s quick conclusion: Paulson’s talk was material nonpublic information, and his client should immediately stop trading the shares of Washington- based Fannie and McLean, Virginia-based Freddie.

Seven weeks later, the boards of the two firms voted to go into conservatorship under the newly created Federal Housing Finance Agency. The takeover was effective Sept. 6, a Saturday, and the companies’ stock prices dropped below $1 the following Monday, from $14.13 for Fannie Mae and $8.75 for Freddie Mac (FMCC) on the day of the meeting. Various classes of preferred shares lost upwards of 85 percent of their value.
Click to expand...

Shouldn't this be a big fucking deal?
Click to expand...

Only if you believe someone really can do something about the small investor who gets screwed every single day the markets are open.

NoOneLikesUs · Nov 29, 2011

trifectarich said:

NoOneLikesUs said:

http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html

The fund manager who described the meeting left after coffee and called his lawyer. The attorney’s quick conclusion: Paulson’s talk was material nonpublic information, and his client should immediately stop trading the shares of Washington- based Fannie and McLean, Virginia-based Freddie.

Seven weeks later, the boards of the two firms voted to go into conservatorship under the newly created Federal Housing Finance Agency. The takeover was effective Sept. 6, a Saturday, and the companies’ stock prices dropped below $1 the following Monday, from $14.13 for Fannie Mae and $8.75 for Freddie Mac (FMCC) on the day of the meeting. Various classes of preferred shares lost upwards of 85 percent of their value.
Click to expand...

Shouldn't this be a big fucking deal?
Click to expand...

Only if you believe someone really can do something about the small investor who gets screwed every single day the markets are open.
Click to expand...

Oh, I don't. It's nice to dream though.

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Paulson gave advance warning of Freddie, Fannie failures

NoOneLikesUs Active Member

LongTimeListener Well-Known Member

Pancamo Active Member

trifectarich Well-Known Member

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Paulson gave advance warning of Freddie, Fannie failures

NoOneLikesUs Active Member

LongTimeListener Well-Known Member

Pancamo Active Member

trifectarich Well-Known Member

NoOneLikesUs Active Member

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