Fannie Mae Needs $8.4 Billion More in Aid after First-Quarter Loss |
| Wall Street Journal - May 10, 2010 |
Fannie Mae will require an additional $8.4 billion in government aid after reporting an $11.5 billion net loss for the first quarter, the latest sign that the bailout of the mortgage investor and its main rival, Freddie Mac, is likely to be the most expensive legacy of the U.S. housing market bust.
Fannie's losses reflected continuing weakness in the housing market and would have been worse without accounting changes that reduced its deficit. The quarterly loss was an improvement from the $23.5 billion loss for the first quarter of 2009 and marked the 12th consecutive quarterly loss for the Washington-based firm.
Over that time, the company has had losses totaling nearly $148 billion, or nearly double its profits for the previous 35 years. The government's tab for Fannie Mae will climb to $84 billion, and its tab for both Fannie and Freddie will reach $145 billion. The government took control of both companies in 2008 through a legal process known as conservatorship as rising losses threatened to wipe out their thin capital reserves.
Read Full Article from Wall Street Journal
- Posted: 2010-05-10 10:55:40
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