The Curious Reason Why Fannie Mae and Freddie Mac Tumbled

Fannie Mae and Freddie Mac shares plummeted this week and the reason why has caused many to ask questions.

Mar 12, 2014 at 3:25PM

Over the last two days, Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC) have watched their stocks plummet by more than 40% following the Senate Banking Committee announcing the bill which many have declared is the beginning of the end for the two government sponsored entities.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analyst David Hanson is joined by Fool contributor Patrick Morris to discuss what the stipulations of the bi-partisan bill are, and why it has caused many investors to flee the stock. In addition, the timing of the corresponding drop is something the two analysts found to be quite interesting.

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David Hanson has no position in any stocks mentioned. Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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