A Wild Day for Fannie Mae

The shares gyrated on Wednesday amid big losses at the mortgage giant and news of a regulatory plan that could free up billions of its capital

With home prices continuing to drop across the U.S. and a housing-market bottom not expected for at least another year and a half, there’s plenty of room for Fannie Mae (FNM) to report bigger credit losses on its mortgage portfolio. That was investors’ main concern on Feb. 27 as they weighed the company’s latest financial results and outlook for 2008.

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