Fannie & Freddie May Be On The Verge Of Getting The Financial Aid They Need
Friday, September 05, 2008SUSIE GHARIB: Uncle Sam may finally be coming to the rescue of struggling mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). According to The Wall Street Journal, the Treasury Department could announce a plan to shore up the financials of Fannie and Freddie as early as this weekend. A Treasury spokesperson told NIGHTLY BUSINESS REPORT the department is "making progress." Reportedly, Treasury would provide sizable funds to both firms, which are saddled with billions of dollars of debt and have a need for fresh capital. Also, Fannie and Freddie are expected to announce major changes to senior management. Congress recently authorized Treasury Secretary Paulson to pump money into Fannie and Freddie in an emergency. Well, in after-hours trading, shares of Fannie plunged almost 30 percent, while Freddie dropped 22 percent
