November 21, 2007
Behind Freddie and Frannie’s Free Fall (BusinessWeek Online)
BusinessWeek Online – Like other companies involved in the mortgage business, Freddie Mac and Fannie Mae have seen their share prices suffer amid the subprime crisis. But that was nothing compared to what happened Nov. 20. Investors punished the shares of the home finance giants after Freddie posted a surprising — and disturbing — third-quarter loss of $2 billion and warned that it was having trouble meeting its regulatory capital requirements and may need to cut its dividend in half to raise capital reserves.



