Industry News

Fannie Mae shares soar on accounting news

Investigator says team found no new financial problems

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Fannie Mae shares soared more than 9 percent Thursday after an investigator hired by the mortgage finance giant indicated he had discovered no new accounting problems, media reports said. Former New Hampshire Republican Sen. Warren Rudman on Wednesday said he was still drafting parts of his report on Fannie's multibillion-dollar accounting problems and was reviewing new documents in the case, Reuters reported. But he said his legal team had the information it needed, and indicated that nothing had been uncovered that had not already been disclosed, saying, "I think we probably have most of what we need," and noting the final report could be delayed until February due to new documents, accounts said. Analysts told Reuters that Rudman's comments were driving Fannie's stock higher on Thursday. The shares jumped more than 9 percent, hitting an intraday high of $53.60 -- a price not seen since August. The stock at midday traded up $4.54, or 9.3 percent, at $53.29 on the New York Stock Exc...