The US House of Representatives has passed the in a vote of passed 223 ‘for’ to 202 ‘against’ the passage.Â What is interesting is that we are seeing a sharp run today in some of the key players, but the ‘volume spikes’ are actually more ‘price spikes’ because the volume is low:
Fannie Mae (NYSE: FNM) is up almost 12% at $1.03 on 35 million shares.
Freddie Mac (NYSE: FRE) is up 10.7% at $1.24 on 22.1 million shares.
Ambac Financial Group, Inc. (NYSE: ABK) is up 8.8% at $0.86 on 8 million shares.
The bill will create a Consumer Financial Protection Agency which aims to protect consumers with more regulated credit cards and mortgages.Â More regulation for systematic risk and derivatives is on the way as well per the passage.Â The members also voted against an amendment by 241-188 that would have given bankruptcy judges new powers to lower balances on mortgages that would have prevented delinquent homeowners from losing their houses.
JON C. OGG
DECEMBER 11, 2009 (2:53 PM EST)