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Fannie and Freddie stock moves may be insider trading, watchdog groups suggest

Andrea Riquier
Fannie and Freddie stock moves may be insider trading, watchdog groups suggest

Inspectors general for the U.S. Treasury and the Federal Housing Finance Agency should investigate whether federal officials improperly shared information about their intent to release Fannie Mae  and Freddie Mac from government conservatorship, two watchdog organizations said Thursday. The groups, Public Citizen and the Revolving Door Project, sent a letter to the two inspectors general noting that shares of the two mortgage guarantors surged in the early part of January after languishing throughout 2018. On Jan. 18, the groups wrote, MarketWatch first broke the news that the interim head of the FHFA, which is Fannie (FNMA)  and Freddie’s (FMCC) regulator, held a staff meeting in which he said employees should soon expect the first steps toward an overhaul of the housing finance system and a release of the two enterprises.