Market rises on Fannie Mae loses! Huh?
Fannie Mae loses $2.2B in 1Q; warns of "severe weakness" - Forbes.com: "Associated Press
Fannie Mae loses $2.2B in 1Q; warns of 'severe weakness'
By MARCY GORDON 05.06.08, 8:13 AM ET
WASHINGTON - Fannie Mae said Tuesday it lost $2.2 billion in the first quarter as home-loan delinquencies mounted and home prices declined more sharply than the mortgage finance company had expected.
The company said it expects 'severe weakness' in the housing market to continue this year, bringing increased mortgage defaults and foreclosures.
Fannie Mae (nyse: FNM - news - people ), the largest U.S. buyer and backer of home loans, said it would raise $6 billion by selling new stock. The company will cut its dividend, starting in the third quarter, to 25 cents a share, to generate around $390 million a year"
Norton's comment: So, how to figure this out. Up on bad news and down on good news. What a challenge.
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