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