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Fairholme Takes $500M Stake in Fannie/Freddie Preferred
Shares down more than 20% today...much more earlier, looks like.
Here's short MarketWatch article posted today...
WASHINGTON (MarketWatch) -- The over-the-counter common shares of federally controlled mortgage backers Fannie Mae FNMA and Freddie Mac FMCC fell Wednesday after seeing large gains over the past two weeks. In the early afternoon, Fannie and Freddie shares both saw a double-digit percentage drop. Both companies are under government conservatorship, and Treasury receives all of their dividends. While the firms' futures are unclear, investors hope that Fannie and Freddie will be able to shed government control after they've repaid all of the $187 billion received in government support. Both stocks have seen heavy trading volume since March. Despite Wednesday's decline, Fannie shares have jumped up more than 1,400% over the past 12 months, while Freddie's have increased almost 1,300%.
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Shares down more than 20% today...much more earlier, looks like.
Here's short MarketWatch article posted today...
WASHINGTON (MarketWatch) -- The over-the-counter common shares of federally controlled mortgage backers Fannie Mae FNMA and Freddie Mac FMCC fell Wednesday after seeing large gains over the past two weeks. In the early afternoon, Fannie and Freddie shares both saw a double-digit percentage drop. Both companies are under government conservatorship, and Treasury receives all of their dividends. While the firms' futures are unclear, investors hope that Fannie and Freddie will be able to shed government control after they've repaid all of the $187 billion received in government support. Both stocks have seen heavy trading volume since March. Despite Wednesday's decline, Fannie shares have jumped up more than 1,400% over the past 12 months, while Freddie's have increased almost 1,300%.