Abstracts » Business

Abbey National

Article Abstract:

Abbey National faces a difficult British mortgage market, and pressure on profit margins from new entrants with lower costs, while Abbey's costs are relatively high, in relation to income. The company has diversified into other activities such as life assurance and consumer finance. The company's share of the mortgage market is falling, but has set up the diversification strategy to compensate for this. There are rumors of a possible takeover bid, which could involve Lloyds TSB.

Abbey National PLC

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Northern Rock

Article Abstract:

Northern Rock benefits from low costs, and the company has takeover potential, though competition in the mortgage market is intense.

Northern Rock Building Society

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Fannie Mae (Federal National Mortgage Association)

Article Abstract:

Federal National Mortgage Association (Fannie Mae) is the biggest financial company in the US. It was set up in 1938 to foster home ownership among lower and middle income groups. Fannie Mae buys mortgage loans and sells mortgage backed securities. There is an implied guarantee from the government though Fannie Mae became a public company in 1968. The investment portfolio is expanding and with this comes profit growth. Costs relating to bad loans are likely to increase as the loan portfolio increases.

Fannie Mae Corp., FNM, Company Profile

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