Stocks Rally Strong on Fannie, Freddie Takeover

Europe, Japan, US futures see market surge
By Matt Cantor,  Newser User
Posted Sep 8, 2008 4:29 AM CDT
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)
camera-icon View 2 more images

(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.” (Read more Fannie Mae stories.)