24/7 Wall St.
07-08-2008, 07:02 AM
24/7 Wall St. Daily News
Rules are made to be broken, or, at least altered when necessary. Shares in Freddie Mac (FRE) and Fannie Mae (FNM) hit multi-year lows yesterday, falling, at one point, almost 20%. The drop was based to a large extent on a note from Lehman Bros. saying that the two mortgage companies might have to raise a combined $75 billion. The reason for the stampede out of the stocks is that the Financial Accounting Standards Board may change a critical rule on capital requirements. According to MarketWatch, "the Lehman Brothers analysts also said they believe it is likely Fannie and Freddie...http://feeds.feedburner.com/~f/typepad/RyNm?i=67Uz6J</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=67Uz6J) http://feeds.feedburner.com/~f/typepad/RyNm?i=m4E9GJ</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=m4E9GJ) http://feeds.feedburner.com/~f/typepad/RyNm?i=MGKahj</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=MGKahj)
complete story here... (http://www.247wallst.com/2008/07/fannie-mae-fnm.html)
Rules are made to be broken, or, at least altered when necessary. Shares in Freddie Mac (FRE) and Fannie Mae (FNM) hit multi-year lows yesterday, falling, at one point, almost 20%. The drop was based to a large extent on a note from Lehman Bros. saying that the two mortgage companies might have to raise a combined $75 billion. The reason for the stampede out of the stocks is that the Financial Accounting Standards Board may change a critical rule on capital requirements. According to MarketWatch, "the Lehman Brothers analysts also said they believe it is likely Fannie and Freddie...http://feeds.feedburner.com/~f/typepad/RyNm?i=67Uz6J</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=67Uz6J) http://feeds.feedburner.com/~f/typepad/RyNm?i=m4E9GJ</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=m4E9GJ) http://feeds.feedburner.com/~f/typepad/RyNm?i=MGKahj</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=MGKahj)
complete story here... (http://www.247wallst.com/2008/07/fannie-mae-fnm.html)