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Market Talk: Fannie (FNM), Freddie (FRE) - Will They Survive?

Shares of embattled GSE's Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) were higher today, with traders possibly hanging their hat on a report from Citigroup which suggested shareholder interest could be preserved. This report counters a recent Barron's story which suggested shareholder equity could be wiped out.

Citi said the recent sell-off has been surprising given the only catalyst was the Barron's report suggesting the Treasury will recapitalize the GSEs soon. Citi said while the GSEs' fundamentals have not changed, the sharp price decline could limit their financial flexibility.

Citi said the GSE are not entirely without options, saying: 1. policymakers could publicly reassert the benefits of the backstop plan; 2. regulator could ease the arbitrary capital surplus requirement further; 3. the GSEs could free-up capital by selling MBS to Treasury and/or allowing portfolio assets to run down over time; 4. given sufficient capital through at least YE08 all parties could wait-it-out until market conditions calm. CONTINUED>>>>

More Rumors ($): http://www.streetinsider.com/Rumors

Hedge Fund Trade of the Day - Cablevision (CVC)

In a recent 13D filing on Cablevision Systems (NYSE: CVC), Harbinger Capital disclosed a 8.1% stake (12,521,307 shares) in the company. Harbinger Capital did show a stake of 7,242,424 and 334,700 shares through calls in Cablevision as of the quarter ended June 30, 2008.

More 13Ds ($)

Analyst Call To Watch - BB&T (BBT)

Citi upgrades BB&T (NYSE: BBT) from Hold to Buy. Price target $34.

Citi analyst says, "We are upgrading BB&T to a Buy based on continuance of better-than-peer credit and growth metrics - BBT continues to drive solid credit results, benefiting from a footprint largely devoid of ."More

More Upgrades: http://www.streetinsider.com/Upgrades