Common, Preferred Shares Of Fannie, Freddie Plunge After Dismissal Of Investor Suit

MarketWatch Pulse

Common and preferred shares of federally controlled mortgage-finance giants Fannie Mae and Freddie Mac plunged in early Wednesday trading, following a judge's decision to dismiss an investor suit. Common shares were recently off 42% for Fannie and 40% for Freddie. Meanwhile, heavily traded preferred series were down 48% for Fannie and 52% for Freddie . On Tuesday a judge dismissed investors' claims over the government's taking of Fannie and Freddie's profits.

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