- Leading Broker to Leave Greece Stock Market
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Main Players in the Greek Election
- Italy 2-Year Borrowing Costs at Peak Since December
- Euro Bond Wins Supporters, but Details Remain Vague
- German, UK Bond Yields Will Go Even Lower
- Southern Europeans Wire Cash to Safer North
- Labor Board Member Resigns Over Leak to GOP Allies
- JPMorgan Beefs Up China Unit With $400-Million Injection
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
MOST SHARED
- Labor Board Member Resigns Over Leak to GOP Allies
- JPMorgan Beefs Up China Unit With $400-Million Injection
- Despite Graft Probe, Sun Hung Kai Is a Buy on Quality Assets: Pros
- Bankia Shares Open 26.75% Down After Bailout Request
- Australia's Hastie Collapses as Building Sector Struggles
- European Shares, Euro Gain as Greek Fears Ease
- Draft EU Report Attacks Italy on Economy
- Beijing Faces Brussels Action on Telecoms Aid
- Japan's Nomura Linked to Another Insider Trading Case
- Buy Asian Stocks Now as Market Panics Over Europe: Analyst
MOST POPULAR
HOT ON FACEBOOK
The Financial Crisis: This Day—One Year Ago, Sept. 8
Text Size 
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.
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
