US mortgage giant Fannie Mae has announced a shake-up of top executives, in an attempt to restore confidence after a series of losses.
Three executives have left, but the board said it remained committed to its chief executive Daniel Mudd.
Fannie Mae and Freddie Mac are a key part of the US market, guaranteeing half the mortgages offered.
Stephen Swad, chief financial officer since last year, Fannie Mae unveils loss of $2.3bn ...
More misery for US mortgage firm ...
US Treasury to support stricken Fannie Mae, Freddie Mac ... will be replaced by controller David Hisey.
Peter Niculescu, head of capital markets, will replace Robert Levin as chief business officer. Enrico Dallavecchia, the company's chief risk officer, will also leave.
The changes "signal they are trying to correct some problems," said David Dreman, chair of Dreman Value Management, a Fannie Mae and Freddie Mac shareholder.
"When you change risk management people, it has to be viewed as recognising problems, so it is mildly positive."
As mortgage guarantors, Fannie Mae and Freddie Mac must pay out when homeowners default on their loans.
But in light of the weakening US housing market, their finances have been highly strained by rising defaults and falling house prices.
Fannie Mae's shares have risen in recent days as investor fears that it would be nationalised subsided. On Wednesday its shares rose 15.3%, although they fell back slightly in after-hours trading.
(BBC)
<< Back