Fannie, Freddie Hammered As Bailout Talk Swirls

Law360, New York (July 10, 2008, 12:00 AM EDT) -- Stock in Fannie Mae and Freddie Mac has crumbled under the weight of new concerns that the two mortgage giants are staring at a massive government bailout.

Thursday's fall marked the third consecutive day that the two mortgage backers have seen steep declines in their stock. The fall was sparked by a Bloomberg article that quoted a former high-level Federal Reserve official calling Fannie and Freddie “insolvent.”

Stock in Washington-based Fannie Mae (NYSE: FNM) fell $2.11, or nearly 14%, for a close at $13.20 on Thursday....
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