June 12 - Reynolds Holding and Antony Curry discuss why shareholders are bonkers for suing the U.S. government over the 2008 bailout that saved the two companies.
Talk about ungrateful Fannie Mae and Freddie Mac two of the biggest bailouts of the 2008 financial crisis. The company's losing 150 billion dollars a year close to bankruptcy. Shareholders could have been wiped out and now -- they're suing what is going on what they think at this is. Absolutely -- I mean that they're living -- Katrina as well I'm putting it. Basically. This lawsuit this week and get what's happened in the past few months Freddie -- it's not me right money right. Fantastic. Five years. Gargantuan. Say this nation -- comes out as it is a bank in Washington State is that this involved this the Austin. Texas pay attention it was funds that. And -- and they have a good vehicle they had that those guys and Texas also buying CDIs and they -- fully pricing but yes -- depending on the witness stand taken to address the exact site. Secondly we get pistols and says we're gonna see because that's taking over Freddie and -- in September 2008 uncles and -- -- the thing is from the -- that the stock rose almost 605. September 2 when it went a written again on the Monday after the bailout you know 41 billion dollars -- -- was wiped out of these incumbents. Yet -- the reasons want to as because. They -- forty heading into into -- were the Mets the only reason these guys they say that is the government said. McCain will give you basically was unlimited money to keep doing. Tonight -- -- -- seem to -- -- -- what else was going on with other banks and that's why exactly if you get -- -- -- wealth -- for the schools to say that. You take two months trample over rides and just when it's government when it's like to -- you. Anticipates charges 1012%. Interest on the on the money they have kind of dying -- it's really -- areas as Dick disorder of the government's benefit but not this thing back on the first hole. You've got these two companies they have virtually no capital -- -- -- forty billion between and to become a five point. Full trillion all race and that's not point 7% capital west banks are having 70%. Two on capitol. Campbell already getting troubles -- these guys will be looking like tennis and you had AIG and Adam and Lehman Brothers Lehman going under and IG being -- and people still wonder how one -- -- and I know -- -- the capital you have to sort of Fannie and Freddie veterinary capital right now one trick -- that he mortgages. And Mo is they're in trouble. When you talk about AIG mention them I mean it's sexy you know Hank Greenberg is also suing the government -- AIG's Michaela exactly you know it's hard about it. At least Arlington and the thing to do nothing that he at least has been going off for want to see just vitamin. This isn't until until this week and then making money I'm -- taking all the money on them in front -- they can put. But also it. Think that's what Freddie and Fannie were like before the crisis and making a lot of money at an implicit government currency and even the Congressional Budget Office 2003. Estimates that the benefit of that since he comes -- twenty billion dollars the mostly from cheap funding. And -- here's an appropriate that if -- he goes to show -- Have no problem with government interference and a couple of cars money because that's all you -- you screw this I natural even you. Europe and chief wellness and I don't know if there on a citizen while China each month he would not exist -- -- in this alliance chalk it up to the creativity of on trial as to who'll be following that story in the meantime stay tuned for more breaking news tomorrow.