Fannie Mae, Freddie Mac Lower As Spending Bill Blocks Privatization

Shares of Fannie Mae and Freddie Mac both skidded 6% lower, as the spending bill agreed to in Congress would forbid the Treasury from a so-called "recap and release" that would send the mortgage buyers into private hands for at least two years. The U.S. Treasury in any case has advocated against such a move. Hedge funds and other private investors have lobbied for such a move and against a ruling that sweeps the profits of these companies, put under federal conservatorship in 2008, to the U.S. Treasury.