Thought it might be humorous and important to point out that Wall Street, prior to Monday’s open, decided to downgrade Freddie Mac (FRE) and Fannie Mae (FNM), AFTER everyone knew about the Fed’s intention to take over the two screwed up companies. Must have been pretty hard to issue the “Sell” and “Equal-wieght” ratings. So who are they doing this service for? Themselves! They’re not trying to give you a heads up; they are putting out their downgrades when the stocks are already down 90% in pre-market hours.
But the best part of this all, is that they will get credit for issuing their downgrades for the previous market day (Friday 9-5-08, since Monday’s market had yet to open) when no one knew about the current plan that is now in place, and the stock had yet to drop 90%. Man those people are geniuses.
So who are the brokerages that do this stuff??? See for yourself:
And the companies are…Lehman Brothers from Overweight to Equal-weight (no wonder they are having so many problems – the stock drops 90% and they only downgrade it to equal-weight?) and Citigroup from a Buy to a Sell.
