7/9/2008

James B. Lockhart III, director of the Office of Federal Housing Enterprise Oversight, said Monday's sell-off of shares of Fannie Mae and Freddie Mac was the result of "a lot of confusion." An analyst had reported that a proposed change in accounting rules may force both entities to raise billions of dollars, but Lockhart said Tuesday that Fannie and Freddie would not necessarily be forced to raise capital because of the accounting change.

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