GSE Capitalization Plunged $23 Billion in 1Q05 As Fannie Mae Troubles Drag Down Stock Price
April 15, 2005
The first quarter of 2005 was not a good time to be holding large amounts of government-sponsored enterprise stock as investors collectively watched the value of their Fannie Mae and Freddie Mac stock plunge a huge $23.05 billion. While some of the decline was triggered by a congressional move to substantially toughen the government’s oversight and regulation of the GSEs, a lot of the drop was triggered to growing revelations of more accounting problems …