Fannie and Freddie: Legislation Losers

NEW YORK ( TheStreet) -- Financial stocks were mostly higher Wednesday as weaker-than-expected economic data soothed concerns the Federal Reserve would reduce its $85 billion monthly bond purchases this year.

A notable exception, however, were common shares of government sponsored enterprises Fannie Mae ( FNMA)and Freddie Mac ( FMCC), which continued to see a sharp sell-off for a second day following the introduction of legislation viewed as negative for shareholders hoping to claim a share in the profits of the housing giants.

Shares of Fannie were down 24.84% to $1.18 mid-Wednesday afternoon, while Freddie shares were lower by 22.67% to $1.16. Volumes were more than twice their trailing three-month daily moving average.

Most other major financial stocks were higher, however, as reflected in the 1.23% rise in Financial Select Sector SPDR ( XLF) a widely-followed financial sector exchange traded fund. Major components Citigroup ( C), Bank of America ( BAC), Wells Fargo ( WFC) and JPMorgan Chase ( JPM) were up by 1.44%, 1.1%, 2.1% and 1.31%, respectively. Trading lower, on the other hand, were Morgan Stanley ( MS)and Goldman Sachs ( GS), following reduced estimates from Atlantic Equities analyst Richard Staite.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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