Farmer Mac said it no longer owns securities issued by troubled CIT Group Inc. in its investment portfolio. A few weeks back the GSE said it sold its entire position ($35 million principal amount) of CIT bonds to mitigate its risk of loss on those securities. The same day, Farmer Mac also sold its Fannie Mae preferred stock holdings realizing a book gain on this transaction, thereby partially offsetting the loss on the sale of the CIT bond holdings. The net loss realized by Farmer Mac on the two transactions will be included in its third-quarter results and was approximately $1 million. Farmer Mac said it issued the statement after inquiries driven by the end of CIT's bailout talks with the government.
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