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Could Fannie and Freddie Shares Soon Come Back to a Major Exchange?

By David Hanson and Matt Koppenheffer - Mar 4, 2014 at 3:54PM

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Could shares of the mortgage giants Fannie Mae and Freddie Mac soon be done with over-the-counter trading and back on a major exchange? One investor has demanded just that.

Investors in common shares of the mortgage giants Fannie Mae ( FNMA 1.99% ) and Freddie Mac ( FMCC 0.66% ) have been betting on the idea that the two agencies may one day leave government conservatorship and be private entities again. While the profits could be huge if it happens, the fate of these two agencies is far from certain.

Now that the agencies have finally reached profitability again however, one investor is no longer content to sit quietly and wait. In this segment from Monday's Where the Money Is, Motley Fool financial analysts David Hanson and Matt Koppenheffer take a look at mutual fund investor Bruce Berkowitz's recent demands that Fannie and Freddie stop sending the Treasury dividends, reinstate shareholder meetings, and once again move toward being listed on a major stock exchange.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Federal National Mortgage Association Stock Quote
Federal National Mortgage Association
FNMA
$0.94 (1.99%) $0.02
Federal Home Loan Mortgage Corporation Stock Quote
Federal Home Loan Mortgage Corporation
FMCC
$0.94 (0.66%) $0.01

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