Stocks Flat After Holiday Weekend
NEW YORK (TheStreet) -- Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote) were among the top performers of the financial sector Monday following the Treasury Department's decision to remove a cap on aid for the government-sponsored enterprises.
Fannie Mae and Freddie Mac jumped 21% and 26.2%, respectively, after the Treasury Department Thursday removed the $400 billion financial cap on the money it will provide to both. The Treasury also said it will not require either to reduce the size of their mortgage-related investment portfolios next year, as previously planned.
The news came after a regulatory filing showed that top executives at Fannie Mae and Freddie Mac will each earn between $4 million and $6 million in 2009. Fannie Mae CEO Michael Williams and Freddie Mac CEO Charles Haldeman will each receive $900,000 in base salary, $3.1 million in deferred compensation, and up to $2 million each in incentive pay. A number of other top executives at both mortgage lenders will also receive compensation in the millions
Fannie Mae shares were up 22 cents to $1.27, and Freddie Mac shares added 33 cents to $1.59. Meanwhile, American International Group (AIG Quote) jumped 6.5% to $32.09 on the government's revised terms for the GSEs, apparently on hopes it too could modify agreements with U.S. officials.
Elsewhere, bank stocks were trading mixed in the absence of any company- or sector-specific news. Goldman Sachs (GS Quote) gained 0.4% to $164.64, Bank of America (BAC Quote) was flat at $15.25, and Citigroup (C Quote) was unchanged at $3.35.
Meanwhile, JPMorgan Chase (JPM Quote) dipped 0.4% to $41.74, Wells Fargo (WFC Quote) fell 1.4% to $26.70, and Morgan Stanley (MS Quote) lost 0.7% to $29.40.
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