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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (44967)	9/8/2008 8:59:48 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69946

Market Scan Banks Burned By Bailout Maurna Desmond, 09.08.08, 11:10 AM ET Fannie and Freddie were thrown a government lifeline over the weekend but several regional banks with sizeable equity stakes in the two firms won't be so lucky. Shares of Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) preferred stock plummeted Monday as a result of the dilutive impact caused by the government's recent intervention, including a large investment in newly issued preferred's. (See "After The Bailout.") Freddie Mac preferred "T" stock fell by 77.4%, or $16.30, to $4.75 during morning trading. Fannie Mae preferred "R" dove by 79.0%, or $10.56, to $2.81. Roughly a third of Gateway Financial's portfolio is dividend yielding agency equity. As a result, Gateway fell 14.8%, or $1.05, to $6.05. Midwest Bank has a similar position and it lost 28.5%, or $1.69, to $4.25. The losers in the GSE bailout are clear, but the winners are harder to identify. Ladenburg Thalmann analyst Dick Bove said in a note to investors that Bank of America (nyse: BAC - news - people ) is "clearly" the "single largest beneficiary of these events." He said the company's acquisition of Countrywide Financial "now appears to have been a stroke of brilliance" because "it already has the technology to replace the GSEs." 10 regional banks with exposure to Freddie Mac and Fannie Mae preferred stock* - Gateway Financial (nasdaq: GBTS - news - people ) (34%) - Midwest Banc (nyse: MBHI - news - people ) (32%) - Westamerica Bancorporation (nasdaq: WABC - news - people ) (16%) - Farmers Capital (14%) - Sovereign Bancorp (nyse: SOV - news - people ) (13%) - Flushing Financial (nasdaq: FFIC - news - people ) (12%) - Valley National Bancorp (nyse: VLY - news - people ) (10%) - Pulaski Financial (nasdaq: PULB - news - people ) (10%) - Columbia Banking (nyse: COLB - news - people ) (8%) - Astoria Financial (nyse: AF - news - people ) (7%) *Percentage represents holdings of Fannie Mae and Freddie Mac as a percentage of total tangible capital. forbes.com