Bailout Rumors - Too Late for Fannie and Freddie Stocks?
The news this week is heating up and may turn out to be a watershed moment for the financing industry...
Bailout rumors have Fannie and Freddie shareholders worried that those stocks are in a race to zero.
On Monday, Fannie Mae and Freddie Mac plunged off a weekend report that posited that the government will indeed need to rescue the cash-starved firms and that equity holders will end up losing their shirts.
Fannie fell 17.8%, or $1.41, to $6.50 and Freddie lost 16.6%, or 97 cents, to $4.88. Investors don't have much left to lose; both companies have lost more than 90.0% of their market value in the last year.
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