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Wednesday, August 06, 2008

Pimco's Gross: Treasury to Buy Fannie/Freddie Preferred by End of Quarter

by Calculated Risk on 8/06/2008 03:43:00 PM

From Bloomberg: Pimco's Gross Says U.S. Will Rescue Fannie, Freddie (hat tip Yal)

``By the end of the third quarter, the preferred stock in Fannie and Freddie will be issued, the Treasury will have bought it,'' Gross, co-chief investment officer at Pacific Investment Management Co., said today in an interview on Bloomberg Television. ``We'll be on our way toward a joint Treasury-agency combination.''
The government will probably buy $10 billion to $30 billion of preferred stock, Gross said.
This will probably happen the first week of September since I'll be on a hiking trip! No worries - Tanta and friends will have it covered.