Fannie & Freddie Get Uncle Sam Nods (FNM, FRE)

Posted in pre-market 
December 28th, 2009

Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are both surging this morning over reports going into the holiday weekend that the U.S. Treasury has ended a cap to how much financial aid can be applied to the government sponsored entities.  Effectively, the Treasury will provide capital on an as needed basis to both companies over the next three years in a bid to reassure investors over the debt issued by both companies.

Fannie Mae (FNM) closed at $1.05 Thursday, and shares are indicated up at $1.25 X $1.27 this morning. Freddie Mac (FRE) shares closed at $1.26 on Thursday, while its shares are indicated up at $1.58 X $1.60 this morning. We’ll follow up on this after the 8:00 AM EST ECN and pre-market activity starts at most brokerage firmsUPDATES: At 8:26 AM EST we have FNM up 23% at $1.29 on over 3.2 million pre-market shares and FRE is up 25% at $1.58 on over 1.13 million shares.

7:36 AM EST


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