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Fannie Mae Swings to Loss,
Will Seek Fresh $6 Billion
Video: Fannie Mae reported a $2.2 billion loss from derivatives, securities and declining home prices. MarketWatch's Robert Schroeder discusses how mortgage finance giant will free up liquidity
Will Seek Fresh $6 Billion
Fannie Mae announced plans to shore up its capital after recording a loss of $2.19 billion for the first quarter and warning that losses stemming from mortgage defaults are likely to be even worse next year
Jumping back into the queue of financial companies tapping investors for more funds, the government-sponsored provider of funds for home mortgages said it expects to raise about $6 billion through the sale of common, preferred and convertible preferred shares. Regulators have been pushing both Fannie and its main rival, Freddie Mac, to bolster their thin cushions of capital to provide more protection against the growing costs of mortgage defaults.
Jumping back into the queue of financial companies tapping investors for more funds, the government-sponsored provider of funds for home mortgages said it expects to raise about $6 billion through the sale of common, preferred and convertible preferred shares. Regulators have been pushing both Fannie and its main rival, Freddie Mac, to bolster their thin cushions of capital to provide more protection against the growing costs of mortgage defaults.