On the Brink: Fannie Shakes Up Top Brass

Fannie Mae(FNM Quote) outlined a sweeping plan to replace three top managers on Wednesday, in an effort to stem losses from a tough credit market and better manage its precious capital.

CEO Daniel Mudd, who will remain in his position, said three top executives -- of finance, business and risk -- will leave the government-supported mortgage giant to be replaced with internal choices.

The announcement comes after weeks of volatile trading due to concerns that the Treasury Department would be forced to rescue Fannie and its counterpart Freddie Mac(FRE Quote), a move that would likely wipe out shareholders. In August alone, Fannie shares have ranged from a low of $3.53 last week from a high of $13.60 earlier this month, with the price surging and plunging amid speculative reports about the future of the firms. ...