Skip to comments.Fannie Mae posts loss, seeks more government funds
Posted on 02/26/2010 3:31:23 PM PST by OldDeckHand
WASHINGTON (Reuters) - Fannie Mae, the largest provider of residential mortgage funds, on Friday reported a loss of $16.3 billion for the fourth quarter of last year and said it requested $15.3 billion from the Treasury to keep its net worth in positive territory.
The government-controlled company said it would need additional taxpayer funds in the future to continue operations.
Fannie Mae said the quarterly loss came as rising defaults kept credit-related expenses elevated at $11.9 billion, though expenses were almost half the third quarter level of $22.0 billion.
Fannie Mae's quarterly loss was $15.2 billion before a $1.2 billion dividend payment on senior preferred stock owned by the Treasury, putting total 2009 losses at $74.4 billion, compared with $59.8 billion in 2008.
With the $15.3 billion request for funds from Treasury, Fannie has now asked for $76.2 billion from the Treasury's unlimited credit line.
Fannie Mae said the losses were likely to be ongoing.
(Excerpt) Read more at reuters.com ...
I’ve been saving a fiddle, a match and a can of gas for just this moment.
The list, ping
Franklin Racist Raines in jail yet?
Sentence a few dozen Fannie Mae execs and Democrat lawmakers, then we will talk money.
You haven’t seen anything yet. These are the losses from Hamp. Wait until principal write-downs begin in earnest. Instead of generational theft you are witnessing theft from those who bought a house that tbhey could afford to those that didn’t. And there are millions upon millions in the latter category.
Fannie Mae posts loss, seeks more of your tax dollars to flush down the crapper.
Crony capitalism at its finest. This thing needs to be bankrupted and shut down, and not fed with an unending stream of tax dollars.
When does this $hit stop?
We’re toast if this keeps going on the way it has been...
...and the band played on.
“Franklin Racist Raines in jail yet?”
Either that or he’s Obama’s next appointee to his “Deficit Commission”.
I say let their Chinese stakeholders provide more of the cash.
No problemo. We’ll just print you up some more!
If obambi can’t get Fannie to work how is he gonna get Heatlh Care to work?
Published: September 11, 2003
These two entities Fannie Mae and Freddie Mac are not facing any kind of financial crisis, said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.
Where is the “Unexpected” ...?
YouTube video clip:
Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis
The Democrats and Obama caused the financial crisis of 08 by supporting Fannie Mae and Freddie Mac and covering up their bad books.
It must of been expected.
Freddie Mac Announces That It Will Cease Purchases of Interest Only Mortgages
Exactly. I will personally join that revolution.
Look, just because the federal government can’t run a lending program, mass transit, or mail delivery without requiring constant bailouts by the taxpayer doesn’t mean it shouldn’t run health care. Thanks OldDeckHand.
Hey Barney! Your chickens are back!
Just like that.
"So sorry. We lost money. So PAY UP, or else."
Yeah but that would mean grand juries, long drawn-out trials... boring stuff like that.
Perhaps we can just drag them through the streets like the good ol' days. I'd pay the $15 billion to see THAT.
Gangsters running our government.
TARP to the banks is being repaid in full or nearly so.
However, the taxpayer money poured into Fannie and Freddie we’ll never see again.
And there will be more dollars down this rathole to come.
Folks, pay close attention to Fannie and Freddie. This is EXACTLY how Obamacare will play out.
Providing health insurance under Obamacare regulation will not be an ordinary competitive activity for companies.
Over the first few years of Obamacare, there will be mergers, encouraged by the government, until there is only a handful of eligible national health insurance providers.
By necessity, these handful of companies will be very closely tied to the federal bureaucracy, as the most important business factor for each of them will be their relationship with their regulator.
Like Fannie and Freddie, the few national health insurance companies will be seen by the market as quasi-federal entities, with an implicit federal guarantee of their financing requirements.
At some point, there will be a dip in the market or some other event and the insolvency of these few companies will be made obvious.
Then, like Fannie and Freddie, the companies will be brought directly under the federal umbrella and we will thereby be at the single-payer system which was the object of Obamacare from the beginning.
I guess the “implied guarantee” was for real after all. Unwinding Fannie and Freddie through bankruptcy, and all the economic pain that will come with it, is inevitable, but this President and any President will spend whatever he can to keep that from happening on his watch.
Yep. And Sachs just “buried” Greece.....for 300 million in commissions ;-)
“When does this **** stop?”
When the folks who are floating the money for it stop doing so.
In fact, it was DemocRat political hacks like Franklin Raines and James Johnson, among others.
Raines was Clinton's budget director before being given the plum job of CEO at Fannie.
Johnson was a politico under Mondale in the Carter administration before becoming CEO at Fannie.
These guys made mucho, mucho bucks as executives of these quasi-governmental entities.
If Obamacare passes, the few national health insurance companies will be the same way. DemocRat party hacks will be rewarded with the lucrative executive positions at these companies. They will run the companies into the ground, until the inevitable federal takeover.
CLOSE their DOORS ALREADY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
even then its not even much help or a loss for the government because they make it back because you dont get the mortgage interest deduction.
Fannie Mae said the losses were likely to be ongoing
Liberals everywhere are now scratching their heads. They are, after all, the only people who never saw this one coming. Its basic numeracy, R-tards! Numbers eventually add up. If you make unsecured loans, or ones based on collateral that cannot possibly cover the potential loss of the loan, to people who can't (or won't) pay, then ultimately you are losing money. If you keep giving out more than you take in, then you will go bust. Why is this so hard for them to understand?
Check out this presentation by Anthony B. Sanders at George Mason University called “The Runaway Trains of Fannie and Freddie.”
It really points out the insanity of the Fannie/Freddie culture. AND points out that they are going to suffer far worse losses when interest rates and inflation rise.
God, this is terrifying!!!!!!!
Bawdy is doing well for himself. His plan is working just fine.
“When does this $hit stop?”