Tuesday, March 11, 2014

Fannie Mae, Freddie Mac Shares Fall on Wind-Down Measure

Was that $FNMA - Fannie Mae (and Freddie Mac) getting punked today? What, no government funded mortgages?  Really?

Does anyone really believe that?

Free markets and private investment is where mortgages belong (IMHO), but I can't see the government stepping away in the era of BIGGER GOVERNMENT.

No way.  Not buying it.  Ain't gonna happen.

No position in either.

Common shares of Fannie Mae and Freddie Mac experienced their biggest intraday drop in 10 months after leaders of the Senate Banking Committee announced plans to eliminate the companies in a new bill.

Fannie Mae shares tumbled as much as 44 percent, paring the losses to 31 percent to close in New York at $4.03, after Edwin Groshans, a managing director at Washington-based equity research firm Height Analytics LLC, described the proposal as holder-negative. Freddie Mac fell 27 percent to close at $4.04. Preferred shares also dropped, some by as much as 12 percent.

Sent from Surface Pro

blog comments powered by Disqus