Money | Wall Street Fannie, Freddie Edge Back From the Brink Panic eases after turbulent trading, but big test is yet to come By Rob Quinn Posted Jul 12, 2008 7:11 AM CDT Copied Fannie Mae on Wisconsin Avenue, in northwest Washington, Friday, July 11, 2008. Shares of Fannie Mae and Freddie Mac sank, then recovered somewhat, on a gut-wrenching Friday. (AP Photo/Manuel Balce Ceneta) Fears of a collapse of Fannie Mae or Freddie Mac finally eased yesterday after a stomach-churning rollercoaster ride that saw a 50% nosedive for the mortgage giants in early trading, writes the Wall Street Journal. A week of panic, prompted in part by reports that the government was preparing rescue scenarios, seem to have abated, as Fannie and Freddie were able to continue their regular borrowing. But a bigger test looms Monday when Freddie is due to sell $3 billion of short-term debt. Henry Paulson moved to assure investors the giants would not be nationalized even if they had to be rescued; insiders tell the Journal that the treasury secretary is keen to ensure a taxpayer bailout doesn't benefit shareholders. Things could turn ugly if the sale Monday fails. The week-long crisis of confidence cost Fannie and Freddy stocks nearly half their value. Read These Next Doctor shares wish for pro-Trump flood victims, and is fired. The Giants celebrate a 'once-in-a-century' home run. Inspectors had just visited doomed Texas camp days before floods. Former President Biden's doctor pleads the 5th. Report an error