Fannie Mae's woes continue
2008-08-09 HKT 05:27
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Problems in the US housing market have pushed mortgage finance company Fannie Mae into the red. The group sank to a net loss of US$2.3bn in the three months to June 30th, against a profit of US$1.97bn last year. It comes days after its sister company Freddie Mac posted worse-than-expected results and its top executive warned house price falls are not over yet. Both government sponsored firms own, or guarantee, nearly half of the nation's mortgage debt. Shares in Fannie Mae sank in the wake of the announcement, falling 9.8% to US$8.98.
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