Freddie, Fannie Bounce Back

Investor's Business Daily (07/09/08) P. A1
Fannie Mae and Freddie Mac saw their stock rise 12 percent and 13 percent, respectively, after the regulator of the mortgage finance giants said a new accounting rule "should not drive a capital change." Lehman Bros. said on July 8 that Fannie Mae would have to raise $46 billion and Freddie Mac would have to raise $29 billion as a result of the accounting change, prompting their shares to plunge 16 percent and 18 percent, respectively.