Farmer Mac Has No Financial Exposure to CIT
16 July 2009 - 11:13PM
PR Newswire (US)
WASHINGTON, July 16 /PRNewswire-FirstCall/ -- In response to
inquiries regarding recent news reports that CIT Group, Inc.'s
discussions with regulators about possible federal assistance had
ended, Federal Agricultural Mortgage Corporation (Farmer Mac, NYSE:
AGM and AGM.A) today reported that it currently holds no CIT
securities in its investment portfolio. The Company reported that,
on July 10, it sold its entire position of $35 million principal
amount of CIT Group, Inc. bonds to mitigate its risk of loss on
those securities. Farmer Mac further reported that on July 10 it
also sold its Fannie Mae Preferred stock holdings realizing a book
gain on this transaction, thereby partially off-setting Farmer
Mac's loss on its former CIT bond holdings. The net loss realized
by Farmer Mac on the two transactions will be included in its third
quarter 2009 results and was approximately $1 million. Farmer Mac
is a stockholder-owned instrumentality of the United States
chartered by Congress to establish a secondary market for
agricultural real estate and rural housing mortgage loans and rural
utilities loans and to facilitate capital market funding for
USDA-guaranteed farm program and rural development loans. Farmer
Mac's Class C non-voting and Class A voting common stocks are
listed on the New York Stock Exchange under the symbols AGM and
AGM.A, respectively. Additional information about Farmer Mac is
available on Farmer Mac's website at http://www.farmermac.com/.
DATASOURCE: Farmer Mac CONTACT: Mary Waters of Farmer Mac,
+1-202-872-7700 Web Site: http://www.farmermac.com/
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