Posted To: MND NewsWire
President-elect Donald J. Trump may have just handed Freddie Mac and Fannie Mae a "get out of jail free" card. Trump has picked Steven Mnuchin to be Secretary of the Treasury. Among his first pronouncements to the press was that the two government sponsored enterprises (GSEs), which have been in federal conservatorship since 2008, should no longer be owned by the government . Stock in the two companies immediately soared (although that is a relative term for assets that have been virtually worthless for over eight years). Within hours Fannie Mae's stock rose 32 percent and Freddie Mac's by 31 percent to $4.04 and $3.99 respectively. The stock prices had already been moving slowly higher in recent months, first because of lawsuits filed against the government by several hedge funds which bought...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2gGGpoV
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