The Curious Reason Why Fannie Mae and Freddie Mac Tumbled

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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  • Report this Comment On March 12, 2014, at 8:56 PM, PaulApp wrote:

    Many banks such as Bank of America and Wells Fargo have reduced their mortgage department. Some banks have only one loan officer working multiple branches! The immanence collapse of the U.S. economy is on the horizon from the instability of the housing market if Fannie and Freddie are to go away!

  • Report this Comment On March 12, 2014, at 9:22 PM, PaulApp wrote:

    The collapse of the U.S. economy is imminent as it's being concocted by Warren Buffett and the Obama administration. They're timing it around 2016 of the election year!

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