Commentary - 11/20/2007

CIT/FreddieMac - All In The Family

Unless you really know the players behind the facade, how can you possibly understand what's really taking place? So here's a small Reuters article about CIT Group and Freddie Mac:

CIT Group arranges financing with Freddie Mac
Wed Sep 19, 2007 8:44am EDT
Co announces that it has agreed to sell to Freddie Mac between $3.5 and $4.2 bln of "AAA-rated" securities backed by approximately $6 bln of residential mortgages. The ultimate amount of the "AAA-rated" mortgage-backed securities to be sold will be determined following completion of rating agency review. Separately, the co expects to obtain $2 bln through an interim facility provided by Morgan Stanley Bank, which will be repaid upon the settlement of the Freddie Mac transaction.
This gets much more interesting when you view the Major Holders of each of these companies. If you click on the links within each table, it brings up another whole group of entanglements. You will also notice that not one company has any insiders owning even 1% of their company. These are plantations controlled by absentee landlords.

My point is that most of these deals are a lot more incestuous than one would think. They're not exactly distinct enterprises. No wonder things are such a mess. One could be excused for thinking there's a whole lot of C Y A going on related to this subprime mess.
Note: Two rating agencies [Standard and Poors; Moody's]are the last two companies listed.

Symbol Name Of Corporation
CIT

Major
Holders
CIT Group, Inc. (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Barclays Global Investors UK Holdings Ltd31,810,26516.67%$1,744,156,829-.--%
Neuberger Berman, LLC10,092,3025.29%$553,360,918-.--%
State Street Corporation8,564,7974.49%$469,607,819-.--%
Mellon Financial Corporation6,957,9853.65%$381,506,317-.--%
Vanguard Group, Inc. (The)6,950,9203.64%$381,118,943-.--%
JP Morgan Chase & Company5,970,6133.13%$327,368,710-.--%
LSV Asset Management5,890,1543.09%$322,957,143-.--%
Wellington Management Company, LLP4,786,1362.51%$262,423,836-.--%
Goldman Sachs Group Inc3,752,9321.97%$205,773,261-.--%
U.S. Trust Corporation3,451,9541.81%$189,270,637-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [3.8%] of 265 Institutional Holders Control46.25%-.--%
Percentage of Barclays and "Associates" Control37.01%-.--%
NOTE: Vanguard manages four funds that control 3.67%.
Therefore, the TOP 10 control 49.92% of CTI Group.


Symbol Name Of Corporation [Freddie Mac]
FRE

Major
Holders
Federal Home Loan Mortgage Corporation (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
Capital Research And Management Company84,247,00012.25%$5,113,792,9009.09%
AXA (Paris, France)45,538,5426.62%$2,764,189,4995.75%
Morgan Stanley44,397,3956.45%$2,694,921,8767.70%
Barclays Global Investors UK Holdings Ltd27,278,1623.96%$1,655,784,4333.91%
Citigroup Inc.23,981,0613.49%$1,455,650,4023.18%
Pzena Investment Management, LLC21,216,5973.08%$1,287,847,437-.--%
Vanguard Group, Inc. (The)19,043,2702.77%$1,155,926,4892.64%
State Street Corporation18,766,4982.73%$1,139,126,4282.94%
Goldman Sachs Group Inc17,201,8992.50%$1,044,155,2693.33%
FMR Corporation (Fidelity Management & Research Corp)13,486,4821.96%$818,629,457-.--%
% of Shares Held by All Insider and 5% Owners:0%0%
Top 10 [1.7%] of 565 Institutional Holders Control45.81%43.66%
Percentage of Barclays and "Associates" Control15.1%23.45%

Symbol Name Of Corporation
MS

Major
Holders
Morgan Stanley (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
State Street Corporation128,257,82512.19%$10,758,266,36110.90%
Barclays Global Investors UK Holdings Ltd61,031,7415.80%$5,119,342,4356.02%
UBS Global Asset Management (Americas) Inc34,123,3693.24%$2,862,268,1913.17%
Vanguard Group, Inc. (The)28,447,6702.70%$2,386,190,5592.45%
FMR Corporation (Fidelity Management & Research Corp)22,878,0042.17%$1,919,006,9751.50%
Price (T.Rowe) Associates Inc14,148,7571.34%$1,186,797,7371.33%
JP Morgan Chase & Company12,901,7151.23%$1,082,195,8541.14%
Mellon Financial Corporation11,814,9561.12%$991,038,509-.--%
Northern Trust Corporation11,068,3041.05%$928,409,3391.24%
Goldman Sachs Group Inc9,161,976.87%$768,506,546-.--%
% of Shares Held by All Insider and 5% Owners:0%0%
Top 10 [1%] of 978 Institutional Holders Control30.84%30.00%
Percentage of Barclays and "Associates" Control23.60%20.63%

Rating Agencies

Symbol Name Of Corporation
MHP

Major
Holders
The McGraw-Hill Companies, Inc. (As of 30-Jun-2007) (As of 30-Jun-2006)
Top 10 Institutional HoldersShares2007Value2006
Goldman Sachs Group Inc20,149,8105.95%$1,371,799,0647.61%
State Street Corporation12,436,3373.67%$846,665,8223.52%
Barclays Global Investors UK Holdings Ltd10,990,3063.24%$748,220,0323.17%
Vanguard Group, Inc. (The)9,617,1942.84%$654,738,5672.62%
FMR Corporation (Fidelity Management & Research Corp)9,335,4042.75%$635,554,3044.40%
UBS Global Asset Management (Americas) Inc9,095,8742.68%$619,247,101-.--%
Sarofim, Fayez *8,676,5472.56%$590,699,3193.14%
Deutsche Bank Aktiengesellschaft (Frankfurt, Germany)8,358,9342.47%$569,076,2262.40%
Transamerica Investment Management LLC The Hague, Netherlands7,688,6762.27%$523,445,062-.--%
Putnam Investment Management, LLC6,929,6962.04%$471,773,703-.--%
% of Shares Held by All Insider and 5% Owners:0%0%
Top 10 [1.5%] of 666 Institutional Holders Control30.47%32.46%
Percentage of Barclays and "Associates" Control14.90%19.90%
NOTE: McGraw-Hill owns these companies and these:
  • BusinessWeek Magazine
  • Standard & Poors Ratings Service
  • Standard & Poors Financial Information

Symbol Name Of Corporation
MCO

Major
Holders
Moody's Corp. (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Berkshire Hathaway, Inc48,000,00017.98%$2,985,600,000-.--%
Davis Selected Advisers, LP18,888,0357.08%$1,174,835,777-.--%
Barclays Global Investors UK Holdings Ltd13,749,6855.15%$855,230,407-.--%
Marsico Capital Management, LLC12,695,1114.76%$789,635,904-.--%
Goldman Sachs Group Inc11,992,2474.49%$745,917,763-.--%
Sands Capital Management, Inc.10,554,2523.95%$656,474,474-.--%
Baillie Gifford And Company10,153,3483.80%$631,538,245-.--%
Morgan Stanley6,890,4412.58%$428,585,430-.--%
Vanguard Group, Inc. (The)6,602,9682.47%$410,704,609-.--%
AXA (Paris, France)6,134,4772.30%$381,564,469-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [1.9%] of 522 Institutional Holders Control54.56%-.--%
Percentage of Barclays and "Associates" Control12.22%-.--%

2007 by Edward Ulysses Cate

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