Taking their time, Fannie and Freddie plunge on wind-down proposal

|About: Fannie Mae (FNMA)|By:, SA News Editor

In one of the great delayed reactions of recent times, Fannie Mae (FNMA -39%) and Freddie Mac (FMCC -36.4%) plunge in wake of the proposed bipartisan Senate bill calling for their wind-down. Like Wile E. Coyote after running off the edge of a cliff, the stocks hung around in positive territory for a couple of hours after the news hit ... then they looked down.

The Fannie "S" series preferred is off 9.9%, Freddie's is down 18.5%.