Fannie Mae (OTC: FNMA) shares jumped on Wednesday after the mortgage giant released its first-quarter financial results. FNMA, which was bailed out by the U.S. government during the 2008 financial crisis, posted its first profit since the bailout.
The strong first-quarter results sparked a rally in FNMA shares, with the stock touching an intra-day high of $0.32. The stock finished the day 14.29% higher at $0.300 on above average volume.
Fannie Mae reported net income of $2.7 billion for the first quarter ended March 31, 2011. This compares with a net loss of $6.5 billion reported for the same period in the previous year. The mortgage giant also announced that it will pay a dividend of $2.8 billion to the Treasury Department.
Fannie Mae’s results for the first quarter suggest that the U.S. housing market is seeing some recovery.
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