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...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.