Commentary - 11/21/2007

Who Controls Our Major Mortgage Corporations?

Obviously, the large mortgage holders are in the news. This article, describing "Countrywide Financial Shares Fall on Freddie Mac Report; Rating Cut" and this article on Bloomberg "Freddie, Fannie Shares Will Continue to Slide, Jim Rogers Says" prompted this update.

Looking deeper, the Major Holders who control those mortgage companies have certainly got their hands full. Countrywide, Freddie Mac and Fannie Mae are the three largest players in the mortgage game and you'll find the TOP 10 holders of each company below.

The two rating agencies, Standard and Poors and Moody's were detailed in yesterday's commentary.

As mentioned last year here, very little has changed since 1889 when the Great Red Dragon book was published, except that a greater amount of power has been concentrated into fewer hands.

One last thing: Did you know about the Federal Home Loan Banks? Perhaps it's just being naive, but it sure reads to me like another version of the Federal Reserve Banks. Simply trying to cover the bases here, as its shares are NOT publicly traded and it is a members-only club.

Symbol Name Of Corporation
CFC

Major
Holders
Countrywide Financial Corp. (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
AXA (Paris, France)55,062,2029.56%$2,001,511,042-.--%
Legg Mason Inc.51,587,9568.96%$1,875,222,2007.12%
Barclays Global Investors UK Holdings Ltd48,670,6888.45%$1,769,179,5089.18%
FMR Corporation (Fidelity Management & Research Corp)33,982,1815.90%$1,235,252,279-.--%
NWQ Investment Management Company, LLC31,642,2025.49%$1,150,194,0424.80%
TCW Group, Inc. (The) [Société Générale-France]25,286,5364.39%$919,165,5835.75%
Putnam Investment Management, LLC20,752,9043.60%$754,368,0604.37%
Price (T.Rowe) Associates Inc18,584,3383.23%$675,540,686-.--%
Barclays Plc18,285,7753.17%$664,687,921-.--%
Wellington Management Company, LLP17,955,1233.12%$652,668,7215.66%
% of Shares Held by All Insider and 5% Owners:11%11%
Top 10 [2.2%] of 456 Institutional Holders Control55.87%47.57%
Percentage of Barclays and "Associates" Control32.90%28.38%


Symbol Name Of Corporation [Freddie Mac]
FRE

Major
Holders
Federal Home Loan Mortgage Corporation (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
Capital Research And Management Company84,247,00012.25%$5,113,792,9009.09%
AXA (Paris, France)45,538,5426.62%$2,764,189,4995.75%
Morgan Stanley44,397,3956.45%$2,694,921,8767.70%
Barclays Global Investors UK Holdings Ltd27,278,1623.96%$1,655,784,4333.91%
Citigroup Inc.23,981,0613.49%$1,455,650,4023.18%
Pzena Investment Management, LLC21,216,5973.08%$1,287,847,437-.--%
Vanguard Group, Inc. (The)19,043,2702.77%$1,155,926,4892.64%
State Street Corporation18,766,4982.73%$1,139,126,4282.94%
Goldman Sachs Group Inc17,201,8992.50%$1,044,155,2693.33%
FMR Corporation (Fidelity Management & Research Corp)13,486,4821.96%$818,629,457-.--%
% of Shares Held by All Insider and 5% Owners:0%0%
Top 10 [1.7%] of 565 Institutional Holders Control45.81%43.66%
Percentage of Barclays and "Associates" Control15.1%23.45%

Symbol Name Of Corporation [Fannie Mae]
FNM

Major
Holders
Federal National Mortgage Association (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
Capital Research And Management Company179,351,50018.42%$11,717,033,49515.49%
Barclays Plc55,370,0515.69%$3,617,325,4319.13%
AXA (Paris, France)54,202,8895.57%$3,541,074,7385.75%
Citigroup Inc.53,898,6695.54%$3,521,200,0455.14%
Morgan Stanley44,856,9784.61%$2,930,506,3724.50%
Barclays Global Investors UK Holdings Ltd36,916,6283.79%$2,411,763,3073.89%
Vanguard Group, Inc. (The)28,061,0732.88%$1,833,229,8992.58%
FMR Corporation (Fidelity Management & Research Corp)27,824,8152.86%$1,817,795,1633.83%
State Street Corporation26,956,6302.77%$1,761,076,6372.89%
JP Morgan Chase & Company23,827,7522.45%$1,556,667,0382.42%
% of Shares Held by All Insider and 5% Owners:0%0%
Top 10 [1.9%] of 507 Institutional Holders Control54.58%55.62%
Percentage of Barclays and "Associates" Control24.85%27.97%
NOTE: Capital Group manages 5 funds that control 10.71%.
Washington Mutual manages a fund that controls 3.04%.
Therefore, the TOP 10 control 65.29% of Fannie Mae,
and Barclays/Associates control 27.89% of Fannie Mae.

© 2007 by Edward Ulysses Cate

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