![]()
- UAE Central Bank Stands by Banks Amid Dubai Crisis
- Dubai's Debt Woes Signal New Era for Creditors
- US Shoppers Spent Less Over Black Friday: NRF
- US Senator Opposes Fed Chief Bernanke Renomination
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- US Treasury Wants Banks to Do More to Ease Mortgages
- Tiger Woods Accepts Full Blame for Car Crash
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Big US Banks May Be Forced to Raise Capital: Bove
- Tiger Woods Wants to Protect Family Privacy: Agent
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- South Korea Sees Exports Bouncing, but Risks Remain
- Japan Won't Intervene to Weaken Yen: Finance Minister
- Banks With The Biggest Exposure to The UAE
- Tiger Woods Wants to Protect Family Privacy: Agent
- Japan Industrial Output Edges Up But Yen May Weigh
- Sands China falls 10% in Hong Kong Debut
Monday sees a dawn for markets--a false dawn, though.
Investors greeted the weekend development of the US Treasury taking over Fannie Mae and Freddie Mac, seeing it as a sign the housing problem was under control. Stock markets around the world rocket upward.
![]() |
Lehman Brothers [LEHMQ
Loading...
()
] stock, however, does not participate in the party, losing 13 percent, despite reports company officials hope to cement plans to raise capital and sell off bad debts sometime in the coming week.
But CNBC's Charlie Gasparino reports that Lehman is moving closer to selling its asset management division—including the "crown jewel," Neuberger Berman—in a sign that other efforts to raise capital have not been successful.
Others are also voicing misgivings: "This euphoria might fade, because Fannie and Freddie are not the problem," Christopher Low, chief economist at FTN Financial, tells CNBC. "Their woes are a symptom of a worldwide contraction in credit that may not be cured by the [bailout] decision."
Top investor Jim Rogers denounces the Treasury's moves as "communist" and "insanity":
![]() |
Elsewhere in the financial industry, Washington Mutual — destined to be bought out by JPMorgan Chase [JPM
Loading...
()
] — ousts Kerry Killinger as its CEO, planning to replace him with Alan Fishman, currently chairman of mortgage broker Meridian Capital Group, according to The Wall Street Journal.
What You Were Reading:
- US Is 'More Communist than China': Jim Rogers
- Lehman Is Moving Closer To Selling Key Business
- What the Fannie Bailout Will and Won't Do
Stocks careen in a way that would become all too familiar to investors through the autumn: The Dow jumps at the opening bell, surging more than 300 points, before pulling back to a more modest mid-200 gain. The S&P 500 and Nasdaq were also higher.
Financials lead the market with sharp gains for those that own a lot of Fannie and Freddie debt, including AIG [AIG
Loading...
()
], Citigroup [C
Loading...
()
] and Bank of America [BAC
Loading...
()
]. Homebuilders also rally.
Fannie Mae [FNM
Loading...
()
] and Freddie Mac [FRE
Loading...
()
] , however, plunge about 89 and 83 percent, respectively—but their debt soars, as investors bet that the bailout will wipe out the companies' stockholders but fully guarantee their bonds. Trading in the stocks is suspended in US pre-market and overseas trading.
Tony Crescenzi of Miller Tabak says the bailout was already priced into the market. Where you should be looking, Crescenzi writes, is at the dollar. The bailout will help keep the U.S. dollar's rally going, he says.
The dollar index hits a one-year high against a basket of currencies following the news.
What the Experts Were Saying:
Jim Rogers, CEO of Rogers Holdings, says the nationalization of Fannie Mae and Freddie Mac shows that the U.S. is "more communist than China" — but it's socialism only for the rich.
Lehman Brothers is moving to sell its prized Neuberger Berman unit. Charlie Gasparino reports.
Paul McCulley, Pimco portfolio manager, offers his insights into the government's bailout of Fannie Mae and Freddie Mac.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?














