by Carla L. Davis
Decisive moves from government agencies have helped the stocks of Fannie Mae and Freddie Mac rebound.
The Fed and the Treasury Department on Sunday offered plans. The Treasury Department's package includes "foreclosure rescue to help strapped homeowners get new, more affordable government-backed mortgages through the Federal Housing Administration, and creates a new regulator and tighter controls for Fannie Mae and Freddie Mac." (MSNBC)
Shares of both Fannie and Freddie went up 13% at the opening bell yesterday. This increase helps absorb a portion of the near 60 percent loss they have sustained through the first quarters of this year.
While there are mixed responses to the governments plan, it appears to have had a soothing effect on the stocks.
Federal Reserve Chairman Ben Bernanke told Congress yesterday that the troubled mortgage institution are in "no danger of failing."
Published: July 17, 2008
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| Carla Davis works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide. She currently works out of the Realty Times corporate office and studio in Dallas, TX. Any questions can be sent to Carla at . |
