Is this line of credit that the government is offering good for Fannie Mae's stock?

Question

Is this line of credit that the government is offering good for Fannie Mae's stock?

Answer 1

It helped for a few days.  But, long term, the potential losses Fannie Mae is facing are so large that its stock may do poorly.  Its stock fell almost 20% today (7/24/08), so government assistance isn't necessarily going to keep the stock from dropping.  The line of credit may prevent Fannie from going into bankruptcy, but that doesn't mean the stock will be worth much.