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December 2, 2008 8:10:38 PM CST

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Stocks Rally Strong on Fannie, Freddie Takeover

Posted Sep 8, 08 4:29 AM CDT in World,  Business 

(Newser) – 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.

Paulson’s plan “is the beginning of the end of the problem,” said a London global equities officer. “We'll see a floor put under financial shares.”

Source Bloomberg

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Treasury Secretary Henry Paulson, Jr., speaks during a news conference Sunday, Sept. 7, 2008 on the bailout of mortgage giants Fannie Mae and Freddie Mac.   (AP Photo/Susan Walsh)
Treasury Secretary Henry Paulson, Jr., left, and Federal Housing Finance Agency Director James Lockhart exchange places during a news conference yesterday on the Fannie Mae and Freddie Mac bailout.   (AP Photo/Susan Walsh)
Japan's benchmark Nikkei 225 stock index was up more than 430 points, or 3.6%, in morning trading after Washington announced a bailout of mortgage giants Fannie Mae and Freddie Mac.   (AP Photo/Koji Sasahara)
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Financial Crisis • bailout • stock market • Japan • Henry Paulson • Europe • Fannie Mae • Freddie Mac • futures market • conservatorship


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