Forbes – Billionaire William Ackman’s Pershing Square hedge fund owns big equity stakes in Fannie Mae and Freddie Mac as part of a bet that efforts in Washington could yield massive returns from the two government-sponsored entities. But on Tuesday, as Ackman was jumping on a conference call to slam the practices of Herbalife, a company he has been lobbying against in Washington, the shares of Fannie Mae and Freddie Mac plunged.
Shares of Fannie Mae fell by 32% and shares of Freddie Mac fell by more than 28% on Tuesday after U.S. senators in Washington announced a bipartisan agreement that could lead to the shutdown of the mortgage giants, which have been operating under government conservatorship. Senate Banking Committee Chairman Tim Johnson and Senator Mike Crapo are behind the plan announced Tuesday that calls for a new government insurer to replace Fannie Mae and Freddie Mac.
