Fannie chief says has not asked for U.S. aid
WASHINGTON (Reuters) - Fannie Mae has not asked the U.S. Treasury Department for any help to stabilize the mortgage finance company and none has been offered, the company's chief executive said on Wednesday.
"I don't want to speculate on what (Treasury) Secretary Paulson might do ... They have not offered anything and we have not asked for anything. I don't anticipate that we will do that," Fannie Mae CEO Daniel Mudd said in a National Public Radio interview in Washington.
Fears have grown among investors in recent days that the federal government will have to rescue Fannie Mae and its rival, Freddie Mac, in a step that would hurt shareholders.
In early July, the Treasury and Federal Reserve conceived a rescue plan that would allow the government take a stake in either Fannie Mae or Freddie Mac if either were to face collapse.
Both government-sponsored enterprises have historically enjoyed a favored place in capital markets as investors interpreted their ties to Washington as a federal guarantee.
If the Treasury were to take a stake in either company, the value of existing shareholders would be diluted.
Mudd said that he was working well with the Treasury Department but did not expect emergency measures to be needed.
"I would observe that this Treasury Department has been all over the issue ... They have been thoughtful. They have been constructive in their approach," he said.
Despite the current woes in the housing market, Mudd said that the future for the sector is strong.
"If we can get through this rough patch -- and everybody is pulling on the same rope -- on the other side is a very strong future for housing," he said.
(Reporting by Patrick Rucker; Editing by Tom Hals)
