Fannie Mae's 2nd-quarter losses triple what was expected

[babylonsister]

Stocks jump as oil prices fall sharply

By TIM PARADIS, AP Business Writer Fri Aug 8, 5:52 PM ET

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On Friday, the dollar, which has sagged along with the economy, reached its highest level against the euro since February, and in the process sent a wave of confidence through the stock market. And because the dollar's strength has contributed to the recent skid in oil prices, light, sweet crude dropped sharply again, falling $4.82 a barrel to settle at $115.20 on the New York Mercantile Exchange. That brought crude's decline over the past four weeks to more than $30.

Investors see the drop in oil as a big boost for the economy, because it should allow consumers to spend more freely. For the moment, that has allowed the market to set aside nervousness about the financial sector, which is still contending with the fallout from the year-old credit crisis.

Fresh financial worries surfaced Friday after Fannie Mae, the largest U.S. buyer and backer of home loans, reported a quarterly loss more than three larger than what Wall Street had expected and said it would slash its quarterly dividend to conserve cash.

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http://news.yahoo.com/s/ap/20080808/ap_on_bi_st_ma_re/wall_street;_ylt=AvX2MJ4WBW.CsL.EoLFcFhdI2ocA

[jwirr]

1. Were low-income housing loans the only thing Fannie did?