Fannie Mae Still Loosing Money; Bailout Now Over $100 Billion, Asking for $7.8 Billion More

Fannie Mae needs bigger lifeline By Tami Luhby @CNNMoney November 8, 2011

NEW YORK (CNNMoney) — Losses widened at mortgage giant Fannie Mae in the third quarter, forcing the government-controlled firm to request another $7.8 billion from the Treasury Department.

The company reported Tuesday a net loss of $5.1 billion, compared to a net loss of $2.9 billion in the second quarter. A year ago, Fannie Mae reported a net loss of $1.3 billion.

The current quarter’s loss was driven mainly by continued delinquency issues in mortgages it had purchased or guaranteed before 2009. Additionally, Fannie Mae suffered from an increase in expenses related to foreclosed properties. Declining interest rates also contributed to the company’s losses.

Fannie Mae’s (FNMA, Fortune 500) latest request for Treasury funding brings its total bailout to $112.6 billion. This will require an annualized dividend payment to the government of $11.3 billion, more than the company has ever earned in annual net income.


About thegovophilemonitor

The larger the government, the smaller the individual.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s