KBW says banks need to recapitalize Fannie Mae, Freddie Mac

10/20/2009 | MarketWatch

Fannie Mae and Freddie Mac common shares are likely worthless, according to analysts at Keefe, Bruyette & Woods. "In order for the government-sponsored entities to survive going forward, we believe they need to be recapitalized through investments from the banks that benefit from their role in the secondary market," the analysts wrote. Because Fannie and Freddie have been at the center of the housing market, their future needs to be addressed, according to the analysts.

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