Financials drag the market down with them
August 18, 2008 by Tisa Silver
Filed under Finance
The Dow is down over 200 points today as concerns were raised in the financial sector regarding a government bailout of Fannie Mae and Freddie Mac.
A report from Barron’s sent shares of Fannie Mae and Freddie Mac plunging to record lows. In response to the Barron’s article, the U.S. Treasury said it would not take the role of “backstop” for Fannie and Freddie, but it looks like their word isn’t worth much today!
During today’s session, Fannie Mae shares have traded down over 19 percent, while shares of Freddie Mac have lost as much as 21 percent.
Only time will tell if the rumors are true, but today the shareholders lose :(
