WASHINGTON - Fannie Mae has announced a capital restructuring program that includes the issuance of $1 billion in preferred stock to raise capital for buying back common stock.

The company, formally known as the Federal National Mortgage Association, also plans a 4-for-1 split of its common stock and has made a commitment to contribute three million shares of stock to its philanthropic foundation.

In a statement, Fannie Mae said it will look at further changes to its capital structure, including additional issues of preferred stock and stock repurchases.

Fannie Mae's board indicated that up to 6% of outstanding common shares may be purchased.

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