Today the markets reacted to the word that the $200 billion bailout of Freddie Mac and Fannie Mae. As of 12:30pm Eastern, the Dow was up 187.92.
Fed Chairman Paulson lamented that the decision to bail out the two mortgage giants was needed but was "not something I wanted to do."
Despite the positive reaction in the market, many analysts cautioned the Fed's decision. Shareholders took the initial beating as shares dropped like lead balloons. Freddie was down 80% to $1.02 per share and Fannie fell 85% to $1.09 per share.
While shareholders lose millions, the New York Times reported that the CEOs of each company stand to make $14.1 million (Freddie) and $9.3 million (Fannie) in severance, benefits, and parting gifts.
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