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Bailout Coming?

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Given that Fannie Mae and Freddie Mac have lost $14 billion in the last year, and that recent legislation passed last month would allow a government bailout, many now believe one is coming. In the last few days, share prices for both companies dropped by over 24%, and Sean Egan, managing director of Egan-Jones Ratings, an independent credit ratings firm tells the Times: “We believe Treasury is going to be forced to act within the next couple of weeks...Probably some time after Labor Day, when investors are back from vacations so that the bailout has the biggest possible positive impact." It's estimated the companies need $20 billion each. Yes, billion. [NY Times]