Finance

Fannie Posts Wide Loss, Will Raise Capital; Alt-A Mortgages Proving Problematic 

Fannie Mae [stock FNM][/stock] said Tuesday morning that it lost $2.2 billion, or $2.57 per share, during a first quarter that saw credit quality continue to deteriorate at the GSE; the loss compares to a $3.6 billion loss posted one quarter earlier. Significant widening of credit spreads, and higher-than-expected home price declines and loan loss severity led to the losses, Fannie said in a press statement.