Friday August 8, 03:16 PM
Fannie Mae losses grow, slashes divi
LONDON (ShareCast) - Fannie Mae (NYSE: FNM - news) reported higher losses and slashed its dividend as housing market turmoil continued to
take its toll on the mortgage finance company. Losses widened to $2.3bn in the second quarter, compared with $2.2bn over the same period a year ago. It said it would cut its dividend to five cents a share from 35 cents as part of a drive to preserve billions of dollars. "Our second quarter results reflect challenging conditions in the housing and mortgage markets that began in 2006 and have deepened through 2007 and 2008," said Daniel H. Mudd, president and chief executive. "Fannie Mae is providing stability and liquidity to the housing market in the United States, and we will continue to play a key role as the market recovers from this cycle." Earlier in the week, Freddie Mac (NYSE: FRE - news) , which like Fannie Mae was created by the US government to expand the secondary market for mortgages, posted a $1.852bn loss in the three months to June 30.
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