Fannie, Freddie climb 25% to continue surge
WASHINGTON (MarketWatch) -- The over-the-counter common shares of mortgage giants Fannie Mae and Freddie Mac each leapt over 25% on Monday, extending the 40%-plus gains seen Friday. Both companies are under government conservatorship, and the Treasury gets all their dividends. Investors have poured into both stocks on the hopes the firms will be able to buy their way out of government control once the dividends they have sent to the government exceed the $187 billion injected into them. Year-to-date, Fannie Mae shares have leapt 1351% and Freddie Mac shares have gained 1246%. Of the preferred shares that are active, Fannie Mae 8.25% rose 6.7% and Freddie Mac 8.375% added 6.9%.