Fannie Mae, the largest U.S. mortgage- finance company, reported a wider loss than analysts estimated, cut the dividend for the second time in six months and said it will raise $6 billion in capital as the worst housing slump since the Great Depression deepens.
The first-quarter net loss was $2.19 billion, or $2.57 a share, Washington-based Fannie Mae said in a statement. Analysts were expecting a loss of 64 cents a share, the average of 12 estimates from a Bloomberg survey.
The shares rose after the company's regulator said it will loosen restrictions on Fannie Mae's capital once the company has raised the $6 billion. Fannie Mae, which owns or guarantees one of every five U.S. home loans, needs new capital to weather credit and derivative losses that rose fivefold to $8.9 billion. Moody's Investors Service affirmed the company's Aaa credit rating. The money raised will enable the company to ``emerge from this crisis'' in a stronger position, Chief Executive Officer Daniel Mudd said.
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