Search
 

GSEs Hold Steady in Wake of Stock Meltdown

WASHINGTON, DC-Fannie Mae and Freddie Mac are recouping much ground that they have lost, but the plan put forth by Treasury still awaits Congressional approval.

By Erika Morphy | Updated on July 17, 2008

WASHINGTON, DC-It has been a tentatively positive couple of days for the GSEs–and the developers and brokers that rely on them–since they lost almost half of their market value and the Treasury Department was forced to step in on Sunday.

As of mid afternoon Thursday, the two agencies have been enjoying a substantial two-day rally–thanks to several factors that have been conspiring in their favor, Frederic Ruffy, the senior options strategist at WhatsTrading.com, a New York City-based provider of options market analysis, tells GlobeSt.com.

The first, of course, was the plan the Treasury Department hastily put together over the weekend. This set of measures includes a temporary increase in the GSEs’ line of credit with Treasury, the ability for the department to purchase equity into the company, and legislation to provide the Treasury department with an increased role in overseeing and regulating GSEs.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.