Breaking of Fannie Mae and Freddie Mac balloon
The two American mortgage agencies Fannie Mae and Freddie Mac looked stable. But on the 10th July, publication in New York Times, told that two companies may be taken under Government rule. And this was followed by panic and selling of shares on half price. On the next day, from the government and spokesmen of Fannie Mae and Freddie Mac announced that they are not in crysis situation and have pretty good practises for fighting with the crysis. For the brake of the shares the main guilty have newpapers and speculations from them. The minister of finances Henry Polson hurried to announce, that government rule of the companies probably will not be done.
In all cases the situation around two giants, created years ago with decision of USA Congress, is still keeping unsure.They has left mortgages for nearly 5 trilions USD, or nearly half of the American mortgage market is in their hands. From the middle of 2007 to the end of March 2008 the loses of Fannie and Freddie is about 12 billions USD. From the begining of the year to 10th July the shares of Freddie Mac felt with more than 75%, and those of Fannie Mae with 64%. During the trade in Friday, 11th July, the shares of Fannie Mae got cheaper with 45% to 8.53 USD, and those of Freddie Mac with 27% to 4,74 USD, reaching 17 years bottom.
Labels: Business News
posted by Zoritza Petrova @ 10:12 PM
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