[groanup]

Check the annual reports of any regional bank in your area and you'll almost certainly see that these banks have large holdings of F&F Pfd stock as part of their reserve requirement

I'm calling BS on that one. I know banks own a ton of Fan and Fred debt (which is now guaranteed by the Treasury) but preferred stock? Banks have already taken a huge hit if that's the case. Some may own some of the shares but banks typically can't own shares of stock unless it is under a holding company situation.

Banks can own NGE stock such as the Federal Home Loan Bank but if they own a big chunk of Fan and Fred somebody fell down on the job. There may be some quirk in the law since I was a banker but I'd be surprised if the totals ran to very much.

[Attention Surplus Disorder]

SUMMARY: 10 REGIONAL BANKS WITH EXPOSURE TO FREDDIE MAC AND FANNIE MAE PREFERRED STOCK
- Note: % represents holdings of FNM/FRE as a percentage of total tangible capital.

- Gateway Financial GBTS (34%)
- Midwest Banc MBHI (32%)
- Westamerica Bancorporation WABC (16%)
- Farmers Capital FFKT (14%)
- Sovereign Bancorp SOV (13%)
- Flushing Financial FFIC (12%)
- Valley National Bancorp VLY (10%)
- Pulaski Financial PULB (10%)
- Columbia Banking COLB (8%)
- Astoria Financial AF (7%)

[Attention Surplus Disorder]

So, for example, with FNM-PT (one grade of FNM preferred) down a mere 78% today, from 13 to 3.....

or, FNM-PS down only 75% today, massively outperforming the -PT....

or, the -PF series, down 72% today....

For either of the top two banks on the above list, basically 1/3 their regulatory capital lost 3/4 of its value today.

So for a back of envelope calculation, 68% of their cap is good. The 32% on top of that is now 8% on top of the 68%, totalling 74%. These banks lost between 5% and 25% of their reg capital today. Not good.