Sat 6 Sep 2008
Two news articles worth mention broke so far over the weekend…
Paulson Plans to Bring Fannie, Freddie Under Government Control (Bloomberg):
Treasury Secretary Henry Paulson is preparing to announce plans to bring Fannie Mae and Freddie Mac under government control, seeking to halt the crisis of confidence in the companies that make up almost half the U.S. mortgage market.
Paulson met with Fannie Mae Chief Executive Officer Daniel Mudd and Freddie Mac CEO Richard Syron yesterday to tell them of the decision to put the companies into a conservatorship, where they would be removed from their jobs, according to a person briefed on the discussions. A public announcement is expected this weekend, the person said.
My take on the news? They need to get rid of more than just the CEOs if our tax money is going to be used to restructure the companies.
And another medium-sized bank has been closed by the FDIC (Bloomberg):
Silver State Bank of Henderson, Nevada was closed by U.S. regulators, the 11th bank to collapse this year amid a surge in soured real-estate loans stemming from the worst housing slump since the Depression.
Silver State, with $2 billion in assets and $1.7 billion in deposits, was shut by the Nevada Financial Institutions Division and the Federal Deposit Insurance Corp., the FDIC said yesterday in a statement.
The FDIC has continued it’s game of closing banks on Friday after the banks are closed. With $2b in assets, Silver State is certainly not small.