Farmer Mac shares up on funding news
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Shares of Federal Agricultural Mortgage Corp. rose 66% after it raised $65 million to replenish capital and satisfy regulatory requirements and appointed a new acting chief executive Wednesday.
Farmer Mac, as the government-sponsored enterprise is called, named Michael A. Gerber acting president and CEO, replacing Henry D. Edelman, the Washington-based company said.
Gerber will continue as CEO of Farm Credit of Western New York, an association in the Farm Credit System.
Farmer Mac shares climbed $2.69 to $6.79 -- 65.6% -- the largest one-day percentage gain since the stock began trading in 1994.
The shares fell 86% last month after losses on investments in Fannie Mae, which along with Freddie Mac was placed into government conservatorship as losses threatened to disrupt the mortgage market, and securities firm Lehman Bros. Holdings Inc., which has filed for bankruptcy protection.
Farmer Mac was created in 1988 by the government to expand the availability of long-term financing to American farmers, ranchers and rural homeowners.
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