The two have lost as much as 50% today and Henry Paulson has said no bailout for either. The never ending Lehman Brothers rumors continue to swirl and they dropped as much as 20%. By the end of the day thanks to reassurance from Senator Dodd, Freddie and Fannie miraculously bounced back though this is not going to be the end of the story. Keep the Rolaids handy.
Fannie Mae and Freddie Mac shares plummeted again on Friday morning — and the broader stock market followed suit — as concern mounted that the government will be forced to take over the beleaguered mortgage finance companies, which some investors fear are at risk of default.
Even after a week of unprecedented losses, the companies’ declines on Friday were the sharpest yet: Freddie Mac shares were down 45 percent from Thursday’s closing price, to $4.42 a share, and Fannie Mae stock fell 39 percent to $8.06 a share.
