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DBRS: GSE Preferreds Will Not Sink Banks.

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| October 01, 2008 | COPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

New York-Ratings agency DBRS says that despite the sinking market for Fannie Mae and Freddie Mac equity securities, most U.S. banks have limited exposure to writedowns related to the preferred stock of the government-sponsored enterprises.

The fear is that the approximately $36 billion of their preferred stock that is outstanding could lose more or all of its value in a bailoout scenario.

Already, many ...

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Source: HighBeam Research, DBRS: GSE Preferreds Will Not Sink Banks.

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