Don't miss

Replay


LATEST SHOWS

FRENCH CONNECTIONS

Malbouffe: understanding junk food à la française

Read more

IN THE PAPERS

Lebanon repeals 'rape law', but activists say more is needed to protect women

Read more

BUSINESS DAILY

US business leaders abandon Trump after Charlottesville

Read more

IN THE PAPERS

'Why do French people smoke so much?'

Read more

MEDIAWATCH

Trump's 'unprecedented transgression'

Read more

EYE ON AFRICA

Kenya’s opposition leader to take poll dispute to Supreme Court

Read more

THE DEBATE

US racial tensions: How far should freedom of speech be stretched?

Read more

THE DEBATE

Burkina Faso attack: How to restore security in the Sahel region?

Read more

THE DEBATE

India and Pakistan mark 70 years of independence: Can the two countries ever reconcile?

Read more

Fannie and Freddie in turmoil, Fed may step in

Latest update : 2008-07-11

Key mortgage lenders Freddie Mac and Fannie Mae saw their shares plummet by half as Wall Street trading opened, before they recouped most of the losses. The Federal Reserve may give the two companies access to emergency credit facilities.

Read Douglas Herbert's comment on Freddie Mac and Fannie Mae

 

Shares of US mortgage finance giants Fannie Mae and Freddie Mac recouped most losses after an early freefall of some 50 percent, as Freddie Mac turned positive in late trade.
   
In highly volatile trade, Freddie Mac plunged 51 percent after the opening and then recovered ground after a series of comments from US officials and a key US senator. At one point, shares were up 3.75 percent.
   
At 1905 GMT, Freddie's shares were up 1.8 percent at 8.15 dollars.
   
Fannie Mae, the other big government-chartered, shareholder-owned mortgage finance firm, lost as much as 49 percent before clawing back to show a loss of 11 percent in afternoon trade. Heading to the close, Fannie Mae was down 15 percent at 11.17 dollars.
   
As the markets were plunging, Senate Banking Committee chairman Christopher Dodd said: "There is sort of a panic going on today, and that's not what ought to be. The facts don't warrant that reaction, in my view."
   
The senator added: "these institutions are ... fundamentally sound and strong."
   
Dodd said he had spoken with the chiefs of the two companies as well as Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke.
   
Asked about speculation that the two entities may have access to the Fed discount window, Dodd said: "I know that both the Fed and the Treasury are looking at various options ... including things like the discount window, that they're, I know, considering."

Date created : 2008-07-11

COMMENT(S)