Movers: Freddie Mac, Fannie Mae, Lehman, Wachovia, Rohm & Haas
Freddie Mac (FRE) and Fannie Mae (FNM) shares are seen weaker after remarks from former St. Louis Fed's Poole saying that the housing agencies were "technically insolvent." Wires report that Treasury Secretary Paulson said this about Fannie Mae and Freddie Mac: "Their regulator has made clear that they are adequately capitalized." According to the Wall Street Journal, The Bush administration has held talks about what to do in the event FRE, FNM falter. Officials don't expect the entities to fail, and no rescue plan is imminent. But the discussions have become more serious recently given the mortgage companies' financial woes, the newspaper says. S&P maintains sell on shares of FRE, cuts target to $6. Maintains hold on shares of FNM, cuts target to $15.
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