The two biggest mortgage lenders in the US, Fannie Mae and Freddie Mac, have seen shares slump by 45% this morning as fears over the US housing market continue.
Speculation has risen that the US Government may need to step in to rescue the two firms, and investors will lose everything. Reports suggest a takeover by the Government is being considered by President Bush as the firms own or guarantee over half of outstanding mortgages in the US. The US housing market has been hit by a major crash in prices over the past two years, a trend which the UK seems to be following. If you would like to comment on this story, contact: John Bakie Tel: 020 7484 9805 e-mail: [email protected] IFAonline
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