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Fannie Misses Estimates, Slashes Dividend

Posted Aug 8, 08 8:37 AM CDT in Business 

(Newser) – Fannie Mae reported its fourth straight losing quarter today, Bloomberg reports, coming in $2.3 billion in the red and slashing its dividend. The $2.51-per-share loss far exceeded the 72-cent average predicted by analysts, much as Freddie Mac surprised investors two days ago. “Neither of these companies have properly provisioned for what we're heading into,” said one analyst. “This thing is going to get worse and last longer and deeper than they originally thought.”

Fannie shaved 5 cents from its dividend, bringing it to 25 cents per share. Investors sent the stock down 12% in early market trading; both Freddie and Fannie have fallen more than 80% this year. The analyst believes each will need to raise up to $15 billion in new cash to keep going.
Source: Bloomberg

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In this 2007 file photo, the Fannie Mae building in Washington is seen.   (AP Photo)
In this April 22, 2008, file photo, a bank-owned home is seen offered for sale in Moreno Valley, Calif.   (AP Photo/Reed Saxon)
In this July 2, 2008, file photo, a bank-owned home is seen for sale in Sacramento, Calif.   (AP Photo)
Fannie Mae on Wisconsin Avenue, in northwest Washington, Friday, July 11, 2008.   (AP Photo)
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