Fannie Mae fights back but loses executives

Germany News.Net
Wednesday 27th August, 2008

Mortgage finance giant Fannie Mae has made changes to its executive ranks, after investors appeared less certain a government bailout of the company might be imminent.

Fannie Mae, the largest buyer and backer of U.S. home mortgages, said its chief financial officer and two other top executives would leave.

Three current executives were promoted to replace them.

But Fannie Chairman Stephen B. Ashley said in a statement that board members remained committed to retaining Chief Executive Daniel Mudd.

Mudd was elevated to the top post in December 2004 when former CEO Franklin Raines and chief financial officer Timothy Howard were swept out of office in an accounting scandal.

Shares in Fannie Mae have climbed back in recent days, as analysts have cast doubt on whether any government rescue is inevitable.

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