Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) both shot up 14% in premarket trading Monday, after Treasury Secretary Steven Mnuchin said on Fox Business that an agreement between the Treasury and the Federal Housing Finance Agency soon that ends the Fannie and Freddie profit sweep. Mnuchin said the deal would allow the government-sponsored enterprises to begin retaining earnings. Fannie's stock tumbled 8.8% on Friday and Freddie's shares shed 8.2% after the Trump administration unveiled its plan for housing finance reform (), which included a recapitalization and ending the conservatorship ( ) of the GSEs. Fannie shares have rallied 79.5% and Freddie's stock has climbed 71.3% over the past 12 months, while the S&P 500 has gained 3.7%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 09, 2019 16:26 ET (20:26 GMT)
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