Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz & Banter

By

PrintPRINT

The Freddie Mac (FRE:NYSE) story may, or may not, be the lightning rod upon which the financial firmament gets impaled (to mix some metaphors). There is simply no way to know at this early stage, as the details remain murky. But the most important headline of the day related to this issue just crossed my Bloomberg: "Freddie Mac named in shareholder lawsuit, firm says."

It seems the law firm Milberg, Weiss is the first to the trough on this particular scandal. This is important not because investors might get some recompense from the alleged wrongdoings of executives (though a notable cause nonetheless). Rather, this is important because of the discovery process that will be part of such a class action suit: detailing the risk controls, the accounting processes, and the reporting rules of a highly complex financial entity. If there is one thing that could make the derivative cockroaches scurry, it's the white light of the lawsuit discovery process.

Keep an eye out for some critters, you know what they say: There's always more than the one you see.
No positions in stocks mentioned.

The informatio= n on this website solely reflects the analysis of or opinion about the perf= ormance of securities and financial markets by the writers whose articles a= ppear on the site. The views expressed by the writers are not necessarily t= he views of Minyanville Media, Inc. or members of its management. Nothing c= ontained on the website is intended to constitute a recommendation or advic= e addressed to an individual investor or category of investors to purchase,= sell or hold any security, or to take any action with respect to the prosp= ective movement of the securities markets or to solicit the purchase or sal= e of any security. Any investment decisions must be made by the reader eith= er individually or in consultation with his or her investment professional.= Minyanville writers and staff may trade or hold positions in securities th= at are discussed in articles appearing on the website. Writers of articles = are required to disclose whether they have a position in any stock or fund = discussed in an article, but are not permitted to disclose the size or dire= ction of the position. Nothing on this website is intended to solicit busin= ess of any kind for a writer's business or fund. Minyanville management= and staff as well as contributing writers will not respond to emails or ot= her communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE