City National to Take Charge on Freddie, Fannie Holdings

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City National Corp. has become one of the first Los Angeles bank holding companies to disclose its exposure to Fannie Mae and Freddie Mac in the wake of the mortgage giants’ takeover by federal regulators earlier this week.

The company said in a Thursday regulatory filing that it expects to take a non-cash charge of $12 million to $13 million in the third quarter.

The Beverly Hills parent of City National Bank said its perpetual preferred investments in Fannie Mae and Freddie Mac are included in securities available for sale at a cost of $23.6 million. They account for about 1 percent of its investment portfolio.

City National said it does not hold any common stock or other equity securities issued by Fannie Mae or Freddie Mac.

City National shares closed up 15 cents to $55.81 Thursday on the New York Stock Exchange.

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