Friday 06 November 2009
November 6, 2009 by Andrew Philbrick · Leave a Comment
Cape Town, 21.00
Overview
The Johannesburg Stock Exchange closed a little higher in the end today, after spending the afternoon in negative territory after the United States released its highest unemployment rate numbers for 26 years. It’s been a tale of ups and downs on the real economic data front, US markets were celebrating good productivity numbers only yesterday, but started today lower on the news of higher unemployment. As at 1.45pm Eastern Standard Time however the Down Jones Industrial Average was up 0.12%.
Indices (at close of trade):
| Index | Value | Rise / Fall |
| JSE All Share | 25,933.45 | +0.14% |
| JSE Top 40 | 23,336.95 | +0.17% |
| JSE Resource 20 | 47,320.16 | +0.85% |
| JSE Industrial 25 | 20,413.47 | +0.16% |
| JSE Financial 15 | 6,931.58 | -1.50% |
Exchange Rates:
1 Dollar buys R7.53
1 Euro buys R11.17
1 British Pound buys R12.50
United States: Fannie Mae seeks $15.8 Billion from Bankrupt Lehman
In my commentary yesterday I discussed the financial economy and how derivatives called mortgage backed securities set the scene for the financial crisis in 2008. Fannie Mae, one of the largest home loan companies in the United States is trying to recover the funds it lost when Lehman Brothers went bankrupt. Fannie Mae specialized in buying mortgages from banks and guaranteeing mortgage backed securities, and owns 20% of the US housing market. Fannie Mae partnered with Lehman Brothers, who underwrote much of its activity but then created a $15.8 Billion hole in Fannie Mae’s finances when it went under in September 2008. Fannie Mae’s prospects of recovering their funds aren’t good, at best they will receive a partial payout.