Breaking 8-28-08 News: Lehman Brothers Announces Layoffs
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Fannie Mae halted trading of their preferred stock in after hours for today before trading resumed. Top executives resign as a new CFO is appointed. Fannie looking to “…preserve equity…”
More to follow as details break!
Michael Shaw named new CRO – Chief Risk officer
Peter Niculescu named new CBO – Chief Business Officer
David Hisey is new CEO – Chief Executive Officer
Jim Cramer actuall suggested that trading be haulted earlier today on the grounds that insider trading was feuling the rise in GSE stock prices.
The SEC imposed the rule, which required investors to actually borrow a stock before selling it short and deliver the stock on the settlment date, to crack down on possible market manipulation that some blamed for steep declines in the shares of financial companies.
As investors dumped shares of Fannie Mae and Freddie Mac for the third straight day, CNBC’s Jim Cramer urged that trading in both stocks be stopped altogether because they were being manipulated by people with insider information.
“This is an outrage,” Cramer said shortly after the market closed. “It’s very clear that someone knows what’s happening.”
But the rule was lifted on Aug 12, allowing investors to short a stock as much as they wanted.
“Cramer also cited the resumption of so-called naked short-selling, which the SEC stopped for several weeks over the summer, for the sharp decline in Fannie and Freddie shares.
Cramer blamed regulators, including the Securities and Exchange Commission and New York Stock Exchange, for not stepping in to halt trading in the shares on the possibility of insider trading.
“They used to stop trading when it was clear that there were some people who knew what was going on and others don’t,” he said. “There’s no cop on the beat anymore.
“There’s so much confusion, so much money changing hands,” he added. “It’s just so unfair to the little guy.”
WASHINGTON (AP) — The mortgage finance giant, Fannie Mae, said Wednesday that three top executives were leaving as the company tries to cope with mounting losses from the troubles in the housing market.
The chief financial officer Stephen M. Swad is leaving to “pursue other opportunities” in the private equity business, Fannie Mae said. He is being succeeded by David C. Hisey, formerly the company’s senior vice president and controller.
Fannie Mae also named Peter S. Niculescu as chief business officer, succeeding the retiring Robert J. Levin.
Michael Shaw is taking over as chief risk officer for Enrico Dallavecchia, who is also leaving the company.
