Shares of Fannie Mae and Freddie Mac fell sharply Monday after an analyst said they may have to raise more capital than anticipated. Freddie Mac's share price fell $2.59, or 18%, to close at $11.91. Fannie Mae's shares fell $3.04, or 16%, to close at $15.74. Analyst Bruce Harting of Lehman Brothers advised clients that a possible change in accounting rules would require the two government-sponsored enterprises to shift off-balance-sheet securities to their balance sheets, a move that would require them to raise additional capital to meet regulatory standards. Separately, Reuters reported that the cost of insuring the debt of Fannie Mae and Freddie Mac rose on Monday.
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