Monday, September 8, 2008

US bank exposure to Fannie and Freddie prefereds (WFC)

Gateway Financial and Midwest Banc have one-third of capital in Fannie and Freddie Preferreds

From FT Alphaville:

The table here may be a little difficult to read, but probably worth pasting all the same - the exposure of 40 US regional banks to GSE preferred stock.

According to Goldman Sachs, the key names at risk are Westamerica and Sovereign, with 10.6 per cent and 8.5 per cent of their respective tangible equity at risk. The next danger level, with 4-6 per cent of tangible equity threatened, includes Valley National, Astoria Financial and Wilmington Trust.

The big unknown is Wells Fargo, which has disclosed $2.5bn of pref holdings, but won’t say how much of these are in GSEs.