UNITED SHAREHOLDERS we are starting a campain for the common shareholders of Freddie Mac and Fannie Mae Please leave comments!!!

The unexpected rejection by the US Congress of the Bush Administration financial rescue plan, TARP on September 29 has opened up the spectre for the first time of a 1931-style domino wave of worldwide bank failures. That is already underway across the US banking spectrum with the failure, nationalization or forced liquidation in the past two weeks of Fannie Mae and Freddie Mac, of the giant Washington Mutual mortgage lender, of the nation’s fourth largest deposit bank, Wachovia. That was on top of a wave of smaller bank failures that began with IndyMac in the spring. For some it is appealing and more simple to grasp the magnitude of these titanic events in the US-centered financial world by assuming it is all part of a pre-planned grand conspiracy by the Money Masters, what in the 1920s in the USA was termed the Money Trust, to control the entire financial world.

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Well, my first comment is that the government’s lack of oversight and deregulation, not to mention deficit spending, are largely to blame for this. So the government “had” to step in to “fix” a problem it basically created itself? If that’s even halfway true, I find it very disturbing. Especially since this is going to cost the taxpayers at least 100 billion dollars, once again because the government and the ultra rich screwed up, the taxpayer has to bail them out? How come every time there is malfeasance and incompetence in high places, the taxpayer is the only one that gets punished?

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NEW YORK (Reuters) - Fannie Mae and Freddie Mac, the two biggest U.S. mortgage finance giants, have enough capital to absorb probable losses through the end of the year, reducing the need for emergency government support, according to Citigroup equity research.

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"It significantly overstates our financial situation," McHale said. "We continue to be adequately capitalized and we are committed to raising additional capital. We're financially sound and have strong liquidity."

Officials from Freddie have pledged to regulators that the company will raise $5.5 billion in additional capital, but even without that the firm is meeting current capital requirements. Executives have not given a time frame for when they will raise that additional financial cushion.

"Any capital that we do raise will depend on a variety of factors, including prevailing market conditions," McHale said.

Executives at Fannie and Freddie, as well as Treasury Secretary Henry Paulson, have repeatedly said they do not expect the firms will need to turn to the government for loans or an equity infusion. Both recently reported steep quarterly losses that were much larger than expected. But even with those losses, executives said they have capital in excess of minimum requirements.

CNNMoney.com staff writer David Goldman contributed to this report.

First Published: August 18, 2008: 10:27 AM EDT

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NEW YORK, Aug. 26, 2008 (Reuters) — Fannie Mae and Freddie Mac , the two biggest U.S. mortgage finance giants, have enough capital to absorb probable losses through the end of the year, reducing the need for emergency government support, according to Citigroup equity research.

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The government regulator overseeing Fannie Mae and Freddie Mac on Thursday reiterated that the mortgage-financing firms remain 'adequately capitalized.'

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McLean, VA – Freddie Mac is adequately capitalized, highly liquid and an essential part of the nation's housing system. We are in the process of finalizing our results and we estimate that at June 30, 2008, we will have a substantial capital cushion above the 20% mandatory target surplus established by our regulator, the Office of Federal Housing Enterprise Oversight ("OFHEO") and a much greater surplus above the statutory minimum capital requirement. We are not under any mandate to raise capital in the near term. OFHEO has stated that we are adequately capitalized and that we hold capital well in excess of regulatory minimums. The Director of OFHEO confirmed yesterday that we are adequately capitalized and have liquidity resources to perform our important public mission, and we are continuing to do so

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IT GOES ON AND ON!!!