Does This Plan Help Fannie Mae and Freddie Mac Investors?

Another day, and another proposed plan on what to do with Fannie Mae and Freddie Mac. The latest plan from a group of Congressmen aims to wind down the two entities and potentially turn them into private insurers, while keeping the governement's hand in housing finance via Ginnie Mae. Would this new plan help or hurt the investors holding the preferred and commons shares?

In this segment of The Motley Fool's everything-financial show, Where the Money Is, Matt Koppenheffer and David Hanson discuss the new plan and share what they think is the most important thing to watch going forward.

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  • Report this Comment On January 20, 2014, at 8:48 PM, maestrolindo wrote:

    This is still a 20 to 100 bagger stock if Congress decides not to..

    A) Violate the Fifth amendment in any process which eliminates the common shares

    B) Terminate 14,000 Fannie Mae and Freddie Mac employees in the D.C. and Virginia area by "winding down" the two GSE's

    C) Experiment with housing reform when there's no need to and crash the economy at a time when an unprecedented number of Americans are retiring.

    I'd say this is a no brainer but I've seen Congress do some pretty stupid things

  • Report this Comment On January 20, 2014, at 9:09 PM, 1723diamond wrote:


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Matt Koppenheffer

Matt is the Managing Director of The Motley Fool GmbH, The Fool's German business. Besuch uns bei!

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Related Tickers

9/3/2015 2:56 PM
FMCC $2.28 Up +0.03 +1.33%
Freddie Mac CAPS Rating: **
FNMA $2.38 Up +0.03 +1.27%
Fannie Mae CAPS Rating: **