Fannie Mae (FNM) Moving Down Today On Barron's Article
Fannie Mae (NYSE: FNM) is moving lower today after a negative article in Barron's over the weekend. Barron's said Fannie Mae's balance sheet is filled with soft assets and understated liabilities that could leave Fannie Mae unprepared if the U.S. encounters a serious financial crisis. In addition, plummeting home prices and mortage defaults could really test FNM's solvency over the next couple of years. If Fannie Mae needs more capital, it is likely to raise more stock, but that further dilutes sharesholders as well. [JT]
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