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 ...
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.
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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.”
http://mason.gmu.edu/~asander7/
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.
the bastard
“When does this $hit stop?”
It won`t.
No!
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