No doubt it’s a market phenomena but “bailing” out any corporation typically involves distorting the market with taxpayer monies. We really don’t need to save many of these failing corporations. Fannie/Freddie may be too large to allow to fail but the principle is still the same.
It's not the company the Fed is worried about, it's all the other companies that are still in business. The fed is trying to keep their assets from approaching a value of zero. Take a look at this FR thread as explaination.