Fannie, Freddie Are Off the Mat; Now What?

What will become of Fannie Mae (FNMA) and Freddie Mac (FMCC) ?

The equity of the two so-called Government Sponsored Enterprises (GSEs) was left for dead in 2008 when the government rescued them in the hope of preserving what was left of the home mortgage market. But shareholders were not legally wiped out by the Treasury's bailout, they were just diluted to all hell. Now that both companies have returned to profitability, some hedge funds have scooped up the stocks in hopes that Treasury would choose to recapitalize the companies. Profits could then start flowing to equity holders again, making the shares valuable....1136 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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