AIG, Fannie Mae, Freddie Mac soar over 250 pc in just a month

NEW YORK: They were battered and seen as the symbols of the financial turmoil, but now, the three entities- American International Group, Fannie Mae and Freddie Mac are emerging as investor-favourites with their stock prices skyrocketing over 250 per cent in August.

The three financial institutions, which were propped up by billions of American taxpayers' dollars last year, seem to be riding on improving market conditions and hopes of economic revival.

Among the three, shares of mortgage lender Freddie Mac have soared a staggering 293 per cent this month to $2.40.

Embattled AIG and mortgage major Fannie Mae saw their stocks climb 276 per cent and 251 per cent, respectively.



The surge in these stocks comes at a time when the American economy is turning for the better, nearly a year after the then famed financial services major Lehman Brothers went bankrupt.

These shares, listed on the New York Stock Exchange, jumped over 250 per cent during the July 29 - August 28 period. Interestingly, during the same period, the benchmark Dow Jones Industrial Average gained about five per cent.

The three firms have gulped down nearly $300 billion since the financial crisis turned intense last September.

Out of them, Fannie Mae and Freddie Mac, have received Federal funds to the tune of nearly $200 billion while AIG got a boost of taxpayers money worth $80 billion.