November 16, 2007 (LPAC)--Fannie Mae's double digit stock plunge between yesterday and today--the biggest since the 1987 market crash--leads a parade of other big brass who are also losing share value as they post huge losses in home mortgage-related financing activities and speculation. Year-to-date, the value of U.S. financial stocks is down 15% overall, as measured by the D.J. Wilshire Index of financial firms.

•   Barclay's, one of the world's major banks, yesterday reported $2.67 billion in charges and write-downs for securities tied to subprime mortgages.
•   Bear Sterns stock dropped 3% on Nov. 15, after its long-term rating was downgraded a notch by Standard & Poors, following an asset write-down by Bear Sterns of $1.2 billion in its Fourth Quarter.
•   Shares of Freddie Mac, a U.S. GSE (government sponsored entity) like Fannie, fell 6% yesterday, by $2.49, down to $39.37.
•   Novastar Financial Inc., a major player in subprime mortgages, saw its share value drop 25%, or 53 cents, down to $1.56 yesterday. There are now expectations that Novastar, linked to Wachovia Bank, will declare bankruptcy. Novastar, which reported a $598 million loss in the Third Quarter, is currently not in compliance with covenants of operation with Wachovia, and is still functioning on a waiver which expires Nov. 30. There is a scramble to pay down debt and take other contingent actions, which may fail.