Fannie Mae Boosts Capital By $5Billion
WASHINGTON - (12/31/04) -- Fannie Mae, still reeling from aregulators' report finding it undercapitalized, said it raised newcapital Wednesday with the private placement of $5 billion ofpreferred stock. The move comes a week after Fannie's chiefregulator, the Office of Federal Housing Enterprise Oversight saidthe secondary mortgage market giant is undercapitalized by as muchas $3 billion due to inaccurate accounting. The size of Wednesday'sprivate placement was bigger than the previously announced $4billion offering. The company priced $2.5 billion in 5.375%non-cumulative convertible shares and $2.5 billion innon-cumulative preferred stock.