Remember the big volume in Flagstar (FBC) on September 17 before the public offering? Since then, Flagstar raised $400 million in common (at $1) and convertible preferred stock and "entered into an agreement to sell approximately $474 million of non-insured non-performing residential first mortgage loans". They expect to receive 44% of the book value (source).
MatlinPatterson owns 66.2% of Flagstar's common stock. It will be interesting to see if the directors and management can turn this distressed bank around. Only the strong regional banks survive at this point. FBC and FBC-P 1-day charts are after the jump, as well as the 5-year disaster.
"TROY, Mich., Dec. 15, 2010 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE:FBC - News) (the "Company") today announced that in light of the unusual market activity in its common and preferred stock this afternoon, the NYSE has contacted the Company in accordance with its usual practice, and the Company has stated that its policy is not to comment on unusual market activity." (Source: Yahoo Finance)
Flagstar Bancorp Common Stock (FBC) - Yahoo Finance
Flagstar Bancorp Preferred Stock (FBC-P) - Yahoo Finance
FBC 5-year Chart - Yahoo Finance
Full disclosure: No ownership