Fannie Mae (FNM) Takes A Blow To The Head, Cuts Dividend

The housing and subprime mortgage market claimed another victim today as Fannie Mae (FNM) reported a dismal quarter, cut its dividend and said it would raise $6 billion.

Fannie Mae says it lost $2.2 billion in Q1. The loss was equivalent to $2.57 a share. It earned 85 cents a share a year earlier.

According to the company "The latest quarter included $4.4 billion in fair value losses, reflecting markdowns on the value of Fannie’s derivatives holdings and trading positions."

Shares fell 15% ahead of the open.

Douglas A. McIntyre