Fannie and Freddie Rally As Vote to End Them is Postponed
Fannie and Freddie Rally As Vote to End Them is Postponed
NEW YORK (TheStreet) -- Fannie Mac (FNMA_) and Freddie Mac (FMCC_) shares were higher in early trading Tuesday following a delay in a vote on a bill from Sens. Tim Johnson (D., SC) and Mike Crapo (R., Idaho) to wind down the government sponsored entities (GSEs).
"There continue to be important discussions to build a larger coalition supporting the bill. While we have the votes to report the bill out today, Members of the Committee have asked for a brief delay to try to work out additional issues prior to a final vote," read a statement from Johnson, Chairman of the Senate Banking Committee.
"There continue to be important discussions to build a larger coalition supporting the bill. While we have the votes to report the bill out today, Members of the Committee have asked for a brief delay to try to work out additional issues prior to a final vote," read a statement from Johnson, Chairman of the Senate Banking Committee.
Fannie Mae shares were higher by 2.37% to $3.89 in mid-morning trading while shares of Freddie Mac were up by 2.06% to $3.96. Shares of the mortgage finance giants were up by more than 6% and 4% respectively shortly after the start of trading.
Though passage of the legislation out of the committee requires just 12 votes, analysts believe it will require at least 15 to force a vote by the full Senate. Even then, then likelihood of passage in the House appears slim, and the GSEs increasingly look like they could survive despite widespread calls from President Obama and many officials in more both major parties to wind them down.
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