Fannie & Freddie Leading Downward Volume (FNM, FRE)

Posted in pre-market 
August 31st, 2009

Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are both getting their wings clipped this morning.  FBR’s research points out that effectively, “No underlying value remains…” in the shares of common stock.  The 200%-plus rise on speculation of reverse stock splits and hope for government assistance continuing are bother over-stepped by the share prices… FBR believes that the most likely result is that both companies will be spun out of government as mortgage insurers and most of their portfolios will remain with the government.  At 8:38 AM EST we have FNM down 4.9% at $1.94 on over 4 million shares and FRE is down almost 6% at $2.25 on 1.9 million shares.

JON OGG

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