Fannie Mae seeks $8.4B in aid after 1Q loss

My God! When will it end?? If you have ever lived in Black Bear country, you fully understand the meaning of "Please don't feed the bears" and you take extra measures to secure your trash to prevent bears from scavenging.

This simple lesson should be applied to the seemingly endless supply of govt funded bailouts and "loans"

This frosts my $%#@!$ cookie.

Fannie Mae has again asked taxpayers for more money after reporting a first-quarter loss of more than $13 billion.

The mortgage finance company, which was rescued by the government in September 2008, said it needs an additional $8.4 billion from the government to help cover mounting losses.

Fannie Mae says it lost $13.1 billion, or $2.29 per share, in the January-March period. That takes into account $1.5 billion in dividends paid to the Treasury Department. It compares with a loss of $23.2 billion, or $4.09 a share, in the year-ago period.

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 $83.6 billion. The total bill for the duo will now be nearly $145 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.

Fannie and Freddie play a vital role in the mortgage market by purchasing mortgages from lenders and selling them to investors. Together the pair own or guarantee almost 31 million home loans worth about $5.5 trillion. That's about half of all mortgages.

The two companies, however, loosened their lending standards for borrowers during the real estate boom and are reeling from the consequences.

With the housing market still on shaky ground, Obama administration officials say it is still too early to draft any proposals to reform the two companies or the broader housing finance system.

But Republicans argue the sweeping financial overhaul currently before Congress is incomplete without a plan for Fannie and Freddie. They propose transforming Fannie and Freddie into private companies with no government subsidies, or shutting them down completely.

The legislation "touches nearly every corner of the economy," Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address over the weekend. "But these major contributors to the crisis are left unscathed," he added, singling out Fannie Mae and Freddie Mac.

apnews.myway.com...

Hello! Is anyone getting this?? Address the problem don't feed it. This disaster is unraveling faster with the passage of each day. Perhaps GM can loan the money to Fannie

[edit on 10-5-2010 by jibeho]

Fannie Mae can kiss my @r$e
2nd line so they can kiss it again

Hey you guys I've got a billion in losses too. Think you can give me a hand? I'll pay you back man I'm good for it!

It's fairly safe to say what we've been seeing the last several years is just one non stop bailout, transferring wealth to the private corporations and saddling the people with the debt.

reply to post by jibeho


I have a question, if the federal government holds 96% of home mortgages and the American People and the States want to make the federal government unnecessary, what would happen to the federal government if-

The States just say frell off. All homes in the said State are now owned in full by the people of the State. All debts of the federal government are owned by the said fed gov.

I want to see someone do something. Time to make the rats go down with ship they have sunk.

Time for a new regime is what I am saying.

Time to declare the corporation of the United States bankrupt and bring back the SOVEREIGN nation of the United States of America.

Corporate bankruptcy is not so bad!

Happens all the time.

Seriously with of this financial disarray in the world you better get ready for the ramping up of the one world currency special thanks to members bilderberg group they positioned the world's financial markets to run them into the ground just so the few can get richer.

I don't know wtf is going on now days other then disappointment...

reply to post by jibeho


In the 90's Japan showed that if you Bail Out firms they simply become Zombie firms who can only survive off further governments hand outs . Fannie Mae is well on its way to becoming a zombie company. Around that same time period but a bit later on when Daewoo went under in South Korea the government their was smart enough to just let things slide . The lesson has gone unheeded in many parts of the world .

Cheers xpert11.

I don't know how I missed this , but, Freddie is of course asking for another $10.6 billion as well. No surprise.

Meanwhile, there is no immediate plan to reform either of these two monstrosities as the Fed continues to shut down smaller banks across the country who fail the test. A test that neither of these GSE's (govt. sponsored enterprises) would pass.

WASHINGTON – Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It's another sign that the taxpayer bill for stabilizing the housing market will keep mounting.

The McLean, Va.-based mortgage finance company has been effectively owned by the government after nearly collapsing in September 2008. The new request will bring the total tab for rescuing Freddie Mac to $61.3 billion.

Freddie Mac says it lost $8 billion, or $2.45 a share, in the January-March period. That takes into account $1.3 billion in dividends paid to the Treasury Department. It compares with a loss of $10.4 billion or $3.18 a share, in the year-ago period.

news.yahoo.com...

Good luck weening off the govt. tit! Where is the money coming from??
Don't forget that we are also on the line for roughly $50 billion for the EU bailout 3 card Monty scheme.

Barney Frank must be smiling as he watches over this mess...

[edit on 12-5-2010 by jibeho]

Ok, so how long can these bailouts and the money printing continue?

Is there a time limit/numerical value/line in the sand that would be hard for the elite to cross without it all blowing up in their faces.

I'm really not being a # or sarcastic...

well I am seeking to ask the government if they can bail me out of 100k in student loans. They caused this recession and the industry is only looking for experienced people. But who cares about the people?