Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Fannie-Freddie Briefly Rise With Capital Rule ‘Prelude’ to Exit

Nov. 19, 2020, 6:33 PM

Common shares of Fannie Mae and Freddie Mac rose as much as 6% Thursday before turning lower after their regulator said the mortgage giants will be required to hold hundreds of billions of dollars in capital to protect against losses, a step considered crucial to releasing them from U.S. control.

While analysts viewed the newly-finalized capital rule as advancing the process, they also questioned whether an administration under President-elect Joe Biden would follow through with plans developed by President Trump’s team. And they also raised questions about how the companies will meet the requirements, and warned about higher mortgage costs. ...