Fannie and Freddie Shares Jump 7%
Shares of Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) are up 7% today after taking a massive beating last week. Today Freddie shares are at 50 cents and Fannie are at 44 cents.
Last week Fannie Mae (FNM) and Freddie Mac (FRE), the largest residential mortgage lenders in the US, will have the trading of their shares stopped (de-listed) on the New York Stock Exchange (NYSE). The firms shares failed to meet the minimum trading price requirement, the Federal Housing Finance Agency (FHFA) said on Wednesday.
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The de-listing announcement of Fannie and Freddie did not come as a surprise to market analysts. Analysts estimate that the government, which now owns 80% of Fannie Mae and Freddie Mac, could run up a bill as high as $1 trillion to fix the two companies.