This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Fannie and Freddie Rally As Vote to End Them is Postponed

Fannie and Freddie Rally story updated from 8:52 a.m. with closing share price and mention of Fairholme-backed group that wants to "preserve and strengthen" the GSEs.

NEW YORK ( TheStreet) -- Fannie Mac (FNMA) and Freddie Mac (FMCC) shares traded higher Tuesday following a delay in a vote on a bill from Sens. Tim Johnson (D., SC) and Mike Crapo (R., Idaho) to wind down the government sponsored entities (GSEs).

"There continue to be important discussions to build a larger coalition supporting the bill.  While we have the votes to report the bill out today, Members of the Committee have asked for a brief delay to try to work out additional issues prior to a final vote," read a statement from Johnson, Chairman of the Senate Banking Committee.

Fannie Mae shares closed higher by 3.16% to $3.92 while shares of Freddie Mac were up by 2.32% to $3.97. Shares of the mortgage finance giants were up by more than 6% and 4% respectively shortly after the start of trading.

Though passage of the legislation out of the committee requires just 12 votes, analysts believe it will require at least 15 to force a vote by the full Senate. Even then, then likelihood of passage in the House appears slim, and the GSEs increasingly look like they could survive despite widespread calls from President Obama and many officials in more both major parties to wind them down.  

"It is increasingly likely the debate over the mortgage finance system lasts into 2017," contends a report from KBW analyst Brian Gardner Tuesday. "By then there may be no political benefit from replacing the GSEs with a new mortgage finance system."

The movement to keep Fannie and Freddie alive got a further push Tuesday from a new group called United for American Homeownership, which announced itself with full page ads in The New York Times and The Wall Street Journal. The coalition, which includes the National Organization for Women, the National Consumer League and the National Black Chamber of Commerce, received "seed funding" from Fairholme Capital, which owns GSE shares and is fighting with the government to claim a share of profits in the entities.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs