Europe is relieved and amused
European stocks soared on news of the U.S. government's bailout of mortgage giants Fannie Mae and Freddie Mac. But as Megan Williams reports, Europeans are also enjoying the irony of the takeovers.
Frankfurt Stock Exchange (MARTIN OESER/AFP/Getty Images)
TEXT OF STORY
Bob Moon: This U.S. government action is going over well with European investors. Stocks rose the highest since the start of the year. As Megan Williams reports, Europeans are also enjoying the irony of the move.
Megan Williams: It didn't take long after the U.S. government announcement it will take over America's two biggest mortgage-finance companies for the stock market to rebound in Europe. The European bank that suffered most subprime losses, UBS AG, has rebounded 11 percent. In German trading, the beleaguered Citigroup rose more than 6 percent. Fannie Mae and Freddie Mac didn't rise. Both shares fell dramatically in Germany.
German business correspondent Tobias Piller says Europe is relieved that the U.S. has place a floor under failures, and there's now less insecurity about the future. But he also says Europe, with a history of more government safety nets than the U.S., is somewhat amused by the U.S. move.
Tobias Piller: Even Bush is now becoming somebody who is nationalizing parts of the economy. Some people are saying this tongue in cheek and laughing a little bit about Bush.
I'm Megan Williams for Marketplace.
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