Fannie, Freddie shares dive, banks stocks weaken
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GM to cut jobs, sell assets, raise cash to survive
Soros says Fannie, Freddie crisis not the last
Reuters
Tuesday July 15, 1:19 pm ET
By Steven C. Johnson
NEW YORK (Reuters) - Investors unloaded shares of Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) on Tuesday after a credit agency cut the mortgage finance companies' ratings amid fears that a government rescue plan may come at the expense of embattled shareholders.
Fresh credit concerns also drove regional banking stocks lower as Federal Reserve Chairman Ben Bernanke said financial markets remain under "considerable stress." He later asserted that the banking sector is well-capitalized, which helped spark a stock market rebound in the afternoon.
With the fate of shareholders in doubt, Fannie and Freddie shares at one point each fell about 25 percent on Tuesday. There was also less demand for the companies' debt even though investors say the proposed rescue favors creditors.
--MORE--
GM to cut jobs, sell assets, raise cash to survive
Soros says Fannie, Freddie crisis not the last
Reuters
Tuesday July 15, 1:19 pm ET
By Steven C. Johnson
NEW YORK (Reuters) - Investors unloaded shares of Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) on Tuesday after a credit agency cut the mortgage finance companies' ratings amid fears that a government rescue plan may come at the expense of embattled shareholders.
Fresh credit concerns also drove regional banking stocks lower as Federal Reserve Chairman Ben Bernanke said financial markets remain under "considerable stress." He later asserted that the banking sector is well-capitalized, which helped spark a stock market rebound in the afternoon.
With the fate of shareholders in doubt, Fannie and Freddie shares at one point each fell about 25 percent on Tuesday. There was also less demand for the companies' debt even though investors say the proposed rescue favors creditors.
--MORE--