|
|
Article: Shares of Fannie Mae, Freddie Mac Plummet; Report Raises Alarm About Firms' Capital
- Article from:
- The Washington Post
- Article date:
- July 8, 2008
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
|
Investors dumped shares of Fannie Mae and Freddie Mac yesterday
based on worries that the two pillars of the housing market could be
forced to raise $75 billion of capital, potentially confronting them
with an overwhelming burden and crippling already struggling
financial markets.
Fannie Mae's stock price plunged 16.2 percent, to $15.74, and
Freddie Mac's fell 17.9 percent, to $11.91 -- their lowest since
1995.
The sell-off came after a report warning that a proposed change
in accounting rules could weaken Fannie Mae and Freddie Mac so
severely that it "could possibly topple the already fragile capital
markets."
Though it raised the specter of a calamity, the report by Lehman
Brothers ...