Author Topic: Fannie Mae Asks $15.3 Billion In U.S. Aid After Loss  (Read 420 times)

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Offline thundley4

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Fannie Mae Asks $15.3 Billion In U.S. Aid After Loss
« on: February 26, 2010, 05:11:29 PM »
The cost of stabilizing the housing market continues to grow, as Fannie Mae sought another $15 billion in federal assistance after posting another big quarterly loss.

The mortgage finance company, seized by federal regulators in September 2008, reported Friday that it lost $16.3 billion, or $2.87 a share in the October-December quarter of last year. That takes into account $1.2 billion in dividends paid to the Treasury Department. It compares with a loss of $25.2 billion or $4.47 a share, in the year-ago period.

During the most recent quarter, Washington-based Fannie suffered $11.9 billion in credit losses and a $5 billion write-down for low income tax credit investments.

The rescue of Fannie Mae and sister company Freddie Mac is turning out to be one of the most expensive aftereffects of the financial meltdown. The new request for aid will bring Fannie Mae's total to more than $75 billion. The total bill for the duo has topped $127 billion.

Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie, lifting an earlier cap of $400 billion.

Who was it that tried to warn us about Fannie and Freddie, and who was it that claimed they were in good health?