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Fannie and Freddie Find New Home

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July 08, 2010 – Comments (3) | RELATED TICKERS: FNMA , FMCC

Twin mortgage money munching monsters Fannie Mae and Freddie Mac were evicted from their stylish NYSE homes when foreclosures on the listing addresses FNM and FRE were completed at the close of trading on Wednesday.

They will be renting gov't subsidized tickers FNMA and FMCC in the Over-the-Counter district starting Thursday.

Unfortunately, proposed financial reform legislation does not include a treatment program for the Mortgage Backed Security addictions that have cost the two former Washington and Wall St. darlings their reputations, fortunes, and now, their homes.

More details for Fannie and Freddie.

3 Comments – Post Your Own

#1) On July 08, 2010 at 2:30 PM, sillysisi (< 20) wrote:

I have 10000 share on FNM and I bought them at 0.36. What am I suppose to do now?

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#2) On July 08, 2010 at 4:25 PM, vferrera (< 20) wrote:

Isn't it still the same stock, just a different ticker symbol?  In any case, you should call your broker.

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#3) On July 08, 2010 at 11:20 PM, rd80 (98.44) wrote:

sillysisi - if you're asking what happens, I'm pretty sure vferrera has it right - the stock should show up in your brokerage statement just  like it did before, but with the new ticker symbol.  If in doubt call the brokerage and ask.

If you're asking what to do with the stock, my opinion is that Fannie and Freddie are worthless.  The gov't is predicting substantial losses on its support of the two and that's not a good sign for common stock shareholders.   
Could they trade higher? - sure.  Could I be wrong? - yep.

This should not be considered investment advice.  Good luck whatever you decide.

Thanks to both for the comments.

Russ

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