The Fed offered to open it emergency discount window to Fannie Mae (FNM) and Freddie Mac (FRE) to offer them the money they may need to remain solvent.

Investors were not convinced. Perhaps they do not think the Fed has the $77 billion in capital that some analysts think the companies will need.

After the news, Freddie Mac was still trading down over 9% at $7.22 and Fannie Mae was off over 26% at $9.73.

Douglas A. McIntyre