ZeroHedge – Fannie, Freddie Crash After Bill Unwinding GSEs Passes Hurdle – 11 March 2014

ZeroHedgeSubmitted by Tyler Durden on 03/11/2014 15:12 -0400

David Stockman blasted the GSE-profiteers just last week but the manic run-up in the stocks of Fannie Mae and Freddie Mac has abruptly come to an end as the FT reports, the US Senate banking committee on Tuesday released a highly anticipated plan that would maintain government backing of mortgages but wind down the GSEs. Not a great day for Mr. Ackman – who owned 10% at last filing.

The bill will call for replacing Fannie and Freddie with a new system of federally insured mortgage securities in which private insurers would be required to take initial losses before any government guarantee would be triggered.

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