Shares of Fannie Mae (FNM) and Freddie Mac (FRE) continue to sink despite government moves to rescue the mortgage giants. While shares of the stocks spiked in early trading, Fannie closed down $0.52 or 5 percent at $9.73. Freddie stock ended off $0.64 or 8 percent at $7.11. And financial stocks overall fell sharply, according to the Nightly Business Report, July 14.
Congress must soon decide on a U.S. Treasury-Federal Reserve measure to save the mortgage giants from further crisis. Treasure Secretary Henry Paulson and Economics Editor for the Wall Street Journal David Wessel weigh the options on NewsHour:
Paulson: As a liquidity back stop, the plan includes a temporary increase in the line of credit the GSEs have with Treasury. Treasury would determine the terms and conditions for accessing the line of credit and the amount to be drawn.
See more on the mortgage mess and help for homeowners on NOW on PBS. Watch NOW’s video on middle class insecurity here: originally aired 2/1/08.
