Sep 8, 2008 03:58:40 (ET)
0758 GMT [Dow Jones] Citigroup downgrades Fannie Mae (FNM) and Freddie Mac (FRE) both to sell, from buy ratings, due to the U.S. federal government's plan to place the GSEs into conservatorship. Also slashes Freddie Mac price target to $0.31 from $6 and Fannnie Mae's target to $0.32 from $9. Citigroup thinks most of the value of Fannie Mae and Freddie Mac created through the operations over the next several years will likely flow to other stakeholders, including debt holders, Treasury and taxpayers. Fannie Mae shares -39% at EUR2.91 in Frankfurt, Freddie Mac -56% at EUR1.59. (TRF) |