The Real Deal Miami

Fannie, Freddie shares soar on news of uncapped U.S. credit lines

December 28, 2009 03:24PM

Following the Treasury Department’s announcement last Thursday that
Fannie Mae and Freddie Mac would be granted unlimited access to
bailout funds
through 2012, shares of the government-supported mortgage giants
rose nearly 20 percent each today. Fannie and Freddie had each been
allotted $200 billion, and have thus far received
a combined $111 billion. The Obama administration had until the end of
the year to increase the companies’ credit limits without
Congressional approval, and the Treasury said it will not force them
to reduce the size of their portfolios next year. [Fox Business]