Fannie Mae financial fallout

Beijing News.Net
Thursday 28th February, 2008

A US$3.6 billion quarterly loss, due to the housing slump, has deepened the money crisis at Fannie Mae, the largest provider of financing for US home loans.

The government-chartered company posted a $US3.80 per share net loss for the fourth quarter.

According to estimates, analysts expected the company to post a fourth-quarter loss of $US1.39 per share.

Fannie Mae and rival Freddie Mac have been severely damaged by the housing crisis.

Rising foreclosures have led the companies to write down values of mortgage securities they own and increase reserves to cover their guarantees of payment on bonds held by investors.

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