Fannie Mae's Mudd Resigns Board Seat

On the Brink

Lauren Tara LaCapra

10/02/08 - 05:39 PM EDT

Fannie Mae (FNM Quote) said Thursday that former CEO Daniel Mudd will resign from the board of directors immediately.

Fannie did not provide a reason for Mudd's departure. The move comes just weeks after the government placed Fannie and its sister company, Freddie Mac (FRE Quote) into conservatorship and replaced top executives.

The mortgage-finance giants had been on the brink of collapse, with plunging share prices and weak capital levels. In after-hours trading on Friday, Fannie shares were up 2.6% at $1.60, and Freddie was down 1.7% at $1.77.

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