Fannie Mae Liquidation Seen Sparing Preferred Holders
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Winding down Fannie Mae and Freddie Mac wouldn’t necessarily wipe out all of their shares.
Senate banking committee leaders announced this week they plan to introduce a bill to dismantle the two mortgage companies. The government seized them in 2008 after they helped fuel the worst financial crisis since the Great Depression. Common shares of the two firms plunged 34 percent this week through yesterday. Preferreds fell 11 percent.