Reuters (02/26/08); Yoon, Al
Investors are concerned that Fannie Mae and Freddie Mac will post another quarter of losses this week, making it more difficult for the two government-sponsored enterprises to play a key role in the housing market's eventual rebound. Brokerage downgrades of both GSEs are cropping up among Wall Street firms, with the former expected to record a fourth-quarter loss of $1.8 billion on Feb. 27 and the latter expected to announce a loss of $2.1 billion when it releases its results a day later. Fannie Mae and Freddie Mac were once among the most reliable profit generators, with stock prices trading above $60 per share. However, since their stocks tumbled sharply last fall, they have both turned into huge loss-makers that now trade under $30.
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