Fears of massive upcoming losses and the need for a possible government bailout sent shares of Fannie Mae down 14 percent Thursday, while shares of Freddie Mac sank 22 percent. Shares of the two government-sponsored enterprises have reportedly not traded this low in more than 16 years. The two companies, which together own or guarantee more than $5 trillion in mortgages, are under pressure from falling home prices, rising foreclosures and stormy financial markets. Their regulator, the Office of Federal Housing Enterprise Oversight, tried to reassure investors in a statement indicating the two government sponsored enterprises "are adequately capitalized, holding capital well in excess of the OFHEO-directed requirement."
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