Update: A comenter points out that tiny financial firm Radian (RDN) post a surprise profit this morning, causing a 50% gain in its shares, causing these others to get caught up in their work.
Original Post: The fact that these companies even trade is a total joke, but then again, maybe it’s good that we have some playthings for committed speculators.
AIG (AIG), Fannie (FNM) and Freddie (FRE) are all surging today, with AIG gaining over 60%. They’re all basically penny stocks.
What’s going on there?
It may have something to do with this:
Reuters: James Lockhart, the regulator for Fannie Mae and Freddie Mac, will soon step down after more than three years as overseer for the mortgage finance companies, an administration official said.
Lockhart will step down very soon as head of the Federal Housing Finance Agency, the official said, but no decision has been made about who might be a suitable long-term replacement, nor what role that person would have in shaping housing policy.
We’re not sure, exactly, what the connection is, except that, perhaps there’s hope that a new regulator will free them up in some way. Either way, it’s odd.
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