SPX: Fed Bails out Fannie Mae, Freddie Mac

Fed Bails out Fannie Mae, Freddie Mac

The stock market responded positively to news that the Fed and Treasury would take over mortgage insurers Fannie Mae and Freddie Mac. Shareholders of both firms suffered, however, as the two entities could not stay afloat amid the storm of defaulted loans and worthless subprime mortgage backed securities that have dragged down the entire financial system in 2008.

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