Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) have already been covered earlier and the news is well known by now. The U.S. Treasury has ended a cap to how much financial aid can be applied to the government sponsored entities already under conservatorship. Effectively, the Treasury will provide capital on an as needed basis to both companies over the next three years in a bid to reassure investors over the debt issued by both companies.
UPDATE at 1:58 PM EST: Freddie Mac is up 26% at $1.59, but volume is 56 million versus 23 million shares on average. Fannie Mae is up 21% at $1.26 on 108 million shares versus an average volume of 38 million shares.
——– UPDATE: At 8:26 AM EST we have FNM up 23% at $1.29 on over 3.2 million pre-market shares and FRE is up 25% at $1.58 on over 1.13 million shares.
——— FIRST at 7:35 AM EST: Fannie Mae (FNM) closed at $1.05 Thursday, and shares are indicated up at $1.25 X $1.27 this morning. Freddie Mac (FRE) shares closed at $1.26 on Thursday, while its shares are indicated up at $1.58 X $1.60 this morning.
JON C. OGG
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