Freddie Mac Soars as Rules Are Eased
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NEW YORK — Federal Home Loan Mortgage Corp.’s preferred stock soared Thursday, when the first in a series of ownership restrictions were lifted in a move that could bring fresh capital to the savings and loan industry.
In heavy trading on the New York Stock Exchange, shares jumped $32.75 a share to $132.75, the first opportunity savings and loan institutions have had to boost their holdings beyond 150,000 shares.
On Wednesday, the Federal Home Loan Mortgage Corp.’s board approved a plan to increase the number of shares that savings institutions may own and to allow the public to own shares beginning Jan. 1.
Freddie Mac, as the congressionally created entity is known, buys home mortgages from savings institutions and other lenders and packages them into securities for sale to investors.
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