Facing Losses, Farmer Mac Raises Capital

Law360, New York (October 1, 2008, 12:00 AM EDT) -- Weeks after mortgage giants Fannie Mae and Freddie Mac were taken over by the government, cousin Farmer Mac has had to raise $65 million in fresh capital to offset heavy losses caused by its investments in Fannie Mae and Lehman Brothers securities.

The Federal Agricultural Mortgage Corp. needed the fresh capital to get back on its feet after sustaining heavy losses caused by its investments in Fannie Mae preferred stock and Lehman Brothers senior debt securities, Farmer Mac said.

The company said that its holdings of...
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