Commentary - 04/06/2008

Who Now Controls Most Of America's Mortgages?

I was mistaken on my commentary of 08/03/23 because I had only listed Countrywide, Fannie Mae and Freddie Mac. Until this Bloomberg article "Lenders Swamped By Foreclosures Let Homeowners Stay" appeared recently, I didn't realize who controlled the rest of America's home mortgage business.

The five largest servicers -- Countrywide Financial Corp., Wells Fargo & Co., CitiMortgage Inc., Chase Home Finance Inc. and Washington Mutual Inc. -- together manage more than half the home loans in the U.S., according to New York-based National Mortgage News, an industry publication.
So if we add Freddie Mac and Fannie Mae to that mix, I figure we've isolated the lion's share of the home mortgage market. That's why I've added tables below for all of the above. Then you can see just how much our financial system is inter-connected, and who controls what. It's also amazing just how much influence London and Paris have in American finances. But then again, this has been going on for almost 400 years. Yes, I know. It is difficult to fathom.

While updating the tables, large changes in holdings showed up. Especially with Capital Group loading it's boats with Fannie Mae shares. They also significantly added to their holdings of Countrywide, Wells Fargo, Citigroup, JPMorgan Chase, Washington Mutual and Freddie Mac. Are they trying to become America's landlord? Looks like they're betting heavily that most of these mortgages will be paid.

The most significant change has been Capital Group's sharp rise in ownership in just the last six months. During this same time, it looks like Barclays and their Associates have been unloading their boats, whether by design or financial necessity. In fact, Barclays reduced their holdings in all but Wells Fargo. Why is certainly beyond me. Maybe you can figure it out. I'm just trying to help.

CapitalGroupBarclaysAssociates
Company12/31/0706/30/0712/31/0706/30/07
Countrywide35.61%0.00%24.42%32.90%
Wells Fargo10.11%3.67%8.59%5.98%
CitiMortgage15.98%4.63%8.82%9.18%
Chase Home6.20%2.36%13.28%13.39%
Washington Mutual29.93%18.41%16.26%23.18%
Freddie Mac32.00%12.25%14.76%15.10%
Fannie Mae73.14%18.42%10.52%27.89%

Looking deeper, the Major Holders who control those mortgage companies have certainly got their hands full. You'll find the TOP 10 Major Holders of each company below. For the sake of many of our country's retiring boomers, I sure hope Capital Group has made the right choices.

There are also two rating agencies that oversee this marketplace, Standard and Poors and Moody's. They were detailed in a previous commentary, CIT/FreddieMac - All In The Family. Perhaps this is why Capital Group didn't load up as much on Freddie Mac.

As mentioned last year here, very little has changed since 1889 when the Great Red Dragon book was published, except that a greater amount of power has been concentrated into fewer hands. With Capital Group controlling over $1.4 TRILLION of investments, and that they've become significant holders in our largest mortgage companies, shouldn't we know more about who's calling the shots at that company?

In my opinion, there's just way too much secrecy in both business and government, which makes it very easy for people to lie, steal and murder. Especially when the controlled media can't tell us any more than they do. They do publish the dots, but connecting dots and publishing that information is dangerous. You have only to read what happened to Gary Webb to understand the reluctance of journalists.

Perhaps that's the reason why: Sometimes The Dragon Wins


Symbol Name Of Corporation
CFC

Major
Holders
Countrywide Financial Corp. (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Brandes Investment Partners L.P.55,325,1679.56%$494,606,992-.--%
Legg Mason Capital Management, Inc.54,636,5449.44%$488,450,703-.--%
Capital Research And Management Company47,659,0008.24%$905,997,590-.--%
Capital World Investors31,259,0005.40%$279,455,460-.--%
FMR LLC (Fidelity)30,992,4785.36%$277,072,753-.--%
Goldman Sachs Group Inc28,095,1224.85%$251,170,390-.--%
Capital Research Global Investors25,450,0004.40%$227,523,000-.--%
Wellington Management Company, LLP23,883,1864.13%$213,515,682-.--%
Barclays Global Investors UK Holdings Ltd22,376,8123.87%$200,048,699-.--%
Pzena Investment Management, LLC22,128,4243.82%$197,828,110-.--%
% of Shares Held by All Insider and 5% Owners:6%-.--%
Top 10 [2.6%] of 383 Institutional Holders Control59.07%-.--%
Percentage of Barclays and "Associates" Control18.16%-.--%
NOTE: Capital Group manages three funds that control 7.21%.
Legg-Mason manages a fund that controls 3.53%.
Washington Mutual manages a fund that controls 2.73%.
Fidelity manages a fund that controls 1.38%.
Therefore, the TOP 10 Major Holders control 73.92%, and
Barclays/Associates control 24.42% of Countrywide.
Capital Group now controls 35.61%.

Symbol Name Of Corporation
WFC

Major
Holders
Wells Fargo & Company (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Berkshire Hathaway, Inc289,259,8688.62%$8,732,755,414-.--%
Capital Research And Management Company139,587,0004.16%$4,972,088,940-.--%
Barclays Global Investors UK Holdings Ltd112,321,7123.35%$3,390,992,485-.--%
State Street Corporation111,160,0883.31%$3,355,923,056-.--%
Capital World Investors110,275,0003.29%$3,329,202,250-.--%
Vanguard Group, Inc. (The)97,861,7252.92%$2,954,445,477-.--%
UBS Global Asset Management (Americas) Inc70,084,9662.09%$2,115,865,123-.--%
FMR LLC (Fidelity)65,437,7071.95%$1,975,564,374-.--%
Davis Selected Advisers, LP62,466,5141.86%$1,885,864,057-.--%
State Farm Mutual Automobile Insurance Co55,039,0141.64%$1,661,627,832-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [0.8%] of 1208 Institutional Holders Control33.19%-.--%
Percentage of Barclays and "Associates" Control6.66%-.--%
NOTE: Capital Group manages three funds that control 2.66%.
Vanguard manages three funds that control 2.17%.
Washington Mutual manages a fund that controls 1.35%.
Davis manages a fund that controls 0.95%.
Barclays manages a fund that controls 0.58%.
Therefore, the TOP 10 Major Holders control 40.90%, and
Barclays/Associates control 8.59% of U.S. Bancorp.
Capital Group now controls 10.11%.

Symbol Name Of Corporation
C

Major
Holders
Citigroup Inc. (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Capital Research And Management Company230,537,5774.63%$10,759,188,718-.--%
Barclays Global Investors UK Holdings Ltd193,733,2243.89%$5,703,506,114-.--%
State Street Corporation168,713,7333.39%$4,966,932,299-.--%
Capital Research Global Investors152,224,2973.06%$4,481,483,303-.--%
Vanguard Group, Inc. (The)147,162,3652.95%$4,332,460,025-.--%
Capital World Investors135,231,7772.71%$3,981,223,514-.--%
FMR LLC (Fidelity)104,388,7532.10%$3,073,204,888-.--%
AXA (Paris, France)85,210,0351.71%$2,508,583,430-.--%
Bank of New York Mellon Corporation76,662,5871.54%$2,256,946,561-.--%
UBS Global Asset Management (Americas) Inc71,044,1101.43%$2,091,538,598-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [0.7%] of 1416 Institutional Holders Control27.41%-.--%
Percentage of Barclays and "Associates" Control8.82%-.--%
NOTE: Capital Group manages four funds that control 5.58%.
Vanguard manages three funds that control 2.13%.
Therefore, the TOP 10 Major Holders control 35.12%, and
Capital Group controls 15.98% of Citigroup.

Symbol Name Of Corporation
JPM

Major
Holders
JPMorgan Chase & Co (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
AXA (Paris, France)162,403,2304.83%$7,088,900,989-.--%
Barclays Global Investors UK Holdings Ltd150,034,4754.47%$6,549,004,833-.--%
State Street Corporation123,254,2063.67%$5,380,046,091-.--%
Vanguard Group, Inc. (The)100,641,6663.00%$4,393,008,720-.--%
FMR LLC (Fidelity)89,333,4812.66%$3,899,406,445-.--%
Capital Research And Management Company74,443,9012.22%$3,411,019,543-.--%
Davis Selected Advisers, LP73,675,3802.19%$3,215,930,337-.--%
Capital Research Global Investors66,839,9011.99%$2,917,561,678-.--%
Bank of New York Mellon Corporation57,802,6121.72%$2,523,084,013-.--%
Goldman Sachs Group Inc46,848,3411.39%$2,044,930,084-.--%
% of Shares Held by All Insider and 5% Owners:1%-.--%
Top 10 [0.7%] of 1317 Institutional Holders Control28.14%-.--%
Percentage of Barclays and "Associates" Control11.25%-.--%
NOTE: Vanguard manages four funds that control 2.87%.
Capital Research manages a fund that controls 1.99%.
Davis Selected Advisers manages a fund that controls 0.99%.
Washington Mutual manages a fund that controls 0.91%.
Barclays manages a fund that controls 0.59%.
Legg-Mason manages a fund that controls 0.53%.
Therefore, the TOP 10 Major Holders control 36.02%, and
Barclays/Associates controls 13.28% of JP Morgan Chase.
Capital Group controls 6.20%.

Symbol Name Of Corporation
WM

Major
Holders
Washington Mutual Inc. (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Capital World Investors69,730,0008.03%$949,025,300-.--%
Capital Research Global Investors58,868,5506.78%$801,200,965-.--%
Brandes Investment Partners L.P.50,201,6785.78%$683,244,837-.--%
Barrow, Hanley Mewhinney & Strauss, Inc. (Old Mutual)45,047,3195.19%$613,094,011-.--%
Hotchkis & Wiley Capital Management, LLC43,488,0925.01%$591,872,932-.--%
Harris Financial Corp35,158,8124.05%$478,511,431-.--%
Franklin Resources, Inc29,357,4213.38%$399,554,499-.--%
Barclays Global Investors UK Holdings Ltd29,247,7623.37%$398,062,040-.--%
Dreman Value Management, L.L.C.27,962,7973.22%$380,573,667-.--%
State Street Corporation27,442,0593.16%$373,486,422-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [1.7%] of 574 Institutional Holders Control47.97%-.--%
Percentage of Barclays and "Associates" Control13.96%-.--%
NOTE: Capital Group manages five funds that control 15.12%.
Franklin manages a fund that controls 2.30%.
Therefore, the TOP 10 Major Holders control 65.09%,
Barclays/Associates control 16.26%, and
Capital Group controls 29.93% of Washington Mutual.

Symbol Name Of Corporation
FRE

Major
Holders
Freddie Mac (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Capital Research Global Investors60,678,1008.82%$2,067,302,867-.--%
Capital World Investors42,545,6006.18%$1,449,528,592-.--%
AXA (Paris, France)36,630,0155.32%$1,247,984,611-.--%
Pzena Investment Management, LLC29,661,9624.31%$1,010,583,045-.--%
Barclays Global Investors UK Holdings Ltd27,283,6923.97%$929,555,386-.--%
UBS Global Asset Management (Americas) Inc22,649,7973.29%$771,678,583-.--%
Morgan Stanley21,698,4733.15%$739,266,975-.--%
Hotchkis & Wiley Capital Management, LLC21,245,6503.09%$723,839,295-.--%
State Street Corporation21,042,3093.06%$716,911,467-.--%
Goldman Sachs Group Inc20,192,6962.93%$687,965,152-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [2.0%] of 489 Institutional Holders Control44.12%-.--%
Percentage of Barclays and "Associates" Control13.11%-.--%
NOTE: Capital Group manages four funds that control 17.00%.
Washington Mutual manages a fund that controls 1.65%.
Vanguard manages a fund that controls 0.91%.
Therefore, the TOP 10 Major Holders control 63.68%, and
Barclays/Associates control 14.76% of Freddie Mac.
Capital Group now controls 32.00%.

Symbol Name Of Corporation
FNM

Major
Holders
Fannie Mae (As of 31-Dec-2007) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2007Value2006
Capital Research And Management Company208,804,89621.35%$12,697,425,725-.--%
Capital Research Global Investors115,585,26611.82%$4,621,098,934-.--%
Capital World Investors108,644,20011.11%$4,343,595,116-.--%
AXA (Paris, France)41,085,3244.20%$1,642,591,253-.--%
Barclays Global Investors UK Holdings Ltd38,982,4953.99%$1,558,520,150-.--%
FMR LLC (Fidelity)34,875,4863.57%$1,394,321,930-.--%
State Street Corporation30,604,6043.13%$1,223,572,067-.--%
Vanguard Group, Inc. (The)29,380,8203.00%$1,174,645,183-.--%
Lord Abbett & Co28,150,2472.88%$1,125,446,875-.--%
HSBC Holdings PLC23,281,5752.38%$930,797,368-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [1.6%] of 603 Institutional Holders Control67.43%-.--%
Percentage of Barclays and "Associates" Control7.12%-.--%
NOTE: Capital Group manages nine funds that control 28.86%.
Washington Mutual manages a fund that controls 3.40%.
Therefore, the TOP 10 Major Holders control 99.69%, and
Barclays/Associates control 10.52% of Fannie Mae.
Capital Group now controls 73.14%.

2008 by Edward Ulysses Cate
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