Wall Street Journal (07/03/08) P. C14; Eavis, Peter
Over the past three months, Freddie Mac's stock has fallen substantially more than that of rival Fannie Mae because the government-sponsored enterprise has yet to complete a $5.5 billion capital raising it announced earlier this spring. By contrast, Fannie Mae issued new shares shortly after detailing plans to do so back in May. The GSE's delay is stoking investor concern that Freddie Mac is having trouble raising new funds to bolster its balance sheet, which currently is without a strong cushion. The longer the mortgage giant waits, the more stock it might have to issue.
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