Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 6, 2008 10:57:47 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Fannie, Freddie Edge Back From the Brink

Posted Jul 12, 08 7:11 AM CDT in Business 

(Newser) – Fears of a collapse of Fannie Mae or Freddie Mac finally eased yesterday after a stomach-churning rollercoaster ride that saw a 50% nosedive for the mortgage giants in early trading, writes the Wall Street Journal. A week of panic, prompted in part by reports that the government was preparing rescue scenarios, seem to have abated, as Fannie and Freddie were able to continue their regular borrowing. But a bigger test looms Monday when Freddie is due to sell $3 billion of short-term debt.

Henry Paulson moved to assure investors the giants would not be nationalized even if they had to be rescued; insiders tell the Journal that the treasury secretary is keen to ensure a taxpayer bailout doesn't benefit shareholders. Things could turn ugly if the sale Monday fails. The week-long crisis of confidence cost Fannie and Freddy  stocks nearly half their value.

Sources: Wall Street Journal, Wall Street Journal, New York Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Market to Congress: Time's Up

    Sep 27, 08 11:50 AM CDT
    Market to Congress: Time's Up Henry Paulson’s bailout plan isn’t perfect, writes Joe Nocera in the New York Times, but we have to enact it anyway because time has run out. “With every passing day, Congress is fiddling while Rome is burning,” says Nocera, just last week a bailout opponent. Lawmakers need an agreement Monday, he predicts, to avoid a Wall Street revolt. “No deal, no credit markets. It’s as basic as that.” More »

  • Paulson Outlines His 'Bold' Bailout

    Sep 19, 08 10:10 AM CDT
    Paulson Outlines His 'Bold' Bailout Henry Paulson confirmed today that he is working on a "bold" plan to buy bad loans from banks, the Wall Street Journal reports. Such a plan would cost taxpayers “hundreds of billions of dollars,” Paulson said, but he believes it is necessary to stabilize the economy. “The ultimate taxpayer protection will be the stability this troubled asset-relief program provides to our financial system,” he said. More »

  • Stocks Rally Strong on Fannie, Freddie Takeover

    Sep 8, 08 4:29 AM CDT
    Stocks Rally Strong on Fannie, Freddie Takeover European and Japanese stocks saw their biggest surge since January and US futures climbed amid news of the Treasury Department’s plan to take charge of Fannie Mae and Freddie Mac, Bloomberg reports. Europe's UBS AG, pounded by subprime losses, and Japan’s Mizuho Financial Group, its biggest bank by assets, jumped 10% after Treasury Secretary Henry Paulson announced the establishment of a conservatorship for the mortgage lenders.
    More »

  • Pressure Mounts for a Freddie, Fannie Bailout

    Aug 20, 08 9:40 AM CDT
    Pressure Mounts for a Freddie, Fannie Bailout A federal bailout for Fannie Mae and Freddie Mac looks more likely every day, both the Wall Street Journal and the New York Times report, as the mortgage giants find it increasingly difficult to borrow and their stock continues to take a pounding. Freddie was able to auction $3 billion in debt yesterday, but at unusually hefty interest rates, which in turn could be passed on to borrowers.
    More »

  • Paulson's Imprimateur on Freddie/Fannie Rescue

    Jul 15, 08 9:16 AM CDT
    Paulson's Imprimateur on Freddie/Fannie Rescue Henry Paulson had a very busy weekend. The treasury secretary had been formulating contingency plans for bailing out beleaguered Fannie Mae and Freddie Mac for weeks, but Friday’s crisis came before those plans were in place, the Wall Street Journal reports in a reconstruction of events leading to the rescue, culminating in the frenzied weekend scramble to negotiate the particulars with the Fed and Congress. More »

Fannie Mae on Wisconsin Avenue, in northwest Washington, Friday, July 11, 2008. Shares of Fannie Mae and Freddie Mac sank, then recovered somewhat, on a gut-wrenching Friday.   (AP Photo/Manuel Balce Ceneta)
Traders work on the floor of the New York Stock Exchange on Friday, July 11, 2008 in New York.   (AP Photo/Jin Lee)
A trader watches a monitor while working on the floor of the New York Stock Exchange on Friday, July 11, 2008 in New York.   (AP Photo/Jin Lee)
A trader talks on the a phone while working on the floor of the New York Stock Exchange on Friday, July 11, 2008 in New York.   (AP Photo/Jin Lee)
A trader watches a monitor while working on the floor of the New York Stock Exchange on Friday, July 11, 2008 in New York.   (AP Photo/Jin Lee)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 6)

Tags

Wall Street  • bailout  • Henry Paulson  • Fannie Mae  • Freddie Mac  • mortgage  • credit market  • markets


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories