Fannie, Freddie shares sink despite gov't rescue

WASHINGTON - Shares of Fannie Mae and Freddie Mac fell Friday, reflecting investors' continued concerns about the mortgage finance companies' financial stability even as lawmakers work to complete a rescue plan for the troubled firms. Shares of both companies have been volatile this week as Wall Street continues to have doubts about the two government-sponsored companies' ability to raise cash to protect against losses. Freddie Mac said last week it plans to raise $5.5 billion. Fannie already has raised $7.4 billion in new capital this year. Shares of Fannie Mae fell 69 cents, or 5.7 percent, to $11.33 in afternoon trading, while Freddie Mac fell 62 cents, or 7 percent, to $8.19. Freddie Mac, which reports its second-quarter earnings on Aug. 6., reported Friday that delinquencies on loans it backs or guarantees rose in May to... [read full story]