Battered mortgage-finance provider Fannie Mae has ousted three top executives in a bid to boost investor confidence, Bloomberg reports. Fannie Mae CEO Daniel Mudd is replacing his chief officers for finance, business and risk management as he struggles to prove that the company has enough capital to ride out the remainder of the mortgage crisis that has sunk shares 85% this year.
"As we move through the bottom of this cycle, maintaining capital, managing credit and driving revenues are the priorities,'' said Mudd. "We have to organize and staff accordingly.'' But analysts are still waiting to see whether the companies will require a federal bail-out, and if so what the impact would be on investors. "Fannie's doing something,” said one expert. But "investors care most about whether there's clarity on a Treasury injection and under what terms that would happen.”