You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Economy
Fannie Mae to Taxpayers: We Need Another $5.1 Billion
2011-08-05
Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.

Including the latest funding request, Fannie Mae has needed $104 billion in government capital injections since the U.S. Treasury seized control of it in 2008 during the financial crisis. Fannie Mae has paid back $14.7 billion in dividends.

Fannie said in a statement that its second-quarter loss "reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006."

It said expenses related to mortgage modifications also contributed to its loss in the quarter. "Fannie Mae expects its credit-related expenses to remain elevated in 2011 due to these factors," the company added.

The $5.2 billion loss attributable to shareholders follows a loss of $8.7 billion in the first quarter and compared with a loss of $3.125 billion in the second quarter of 2010.

Loans made in the past two years have been more profitable for Fannie Mae than loans made during the housing boom in preceding years.
I can't say anything about this as I would be sinktrapped.
Posted by:DarthVader

#10  "NOT-ELLIE-MAE-CLAMPETT" FANNIE MAE

versus

* PEOPLE'S DAILY FORUM > [US SecDef]PANETTA: USDOD CUTS MORE THAN US$350.0BILYUHN [oer ten years] WOULD BE DANGEROUS.

Moreso given ...

PEOPLE'S DAILY FORUM > US GERAS UP TO FIGHT "HOMEGROWN JIHADIS". More specifically - ALL FORMS OR VARIANTS OF BROAD-BASED DOMESTIC RADICALISM = EXTREMISM, NOT NECESSARILY JUST ISLAMIST TERRORISM.

* YAHOO FINANCE > [USA] THE GOVT. CANNOT SAVE ECONOMY THIS TIME, even wid any new "QE3".

ARTIC > Things are maxed out = at the minimal/par operat levels already, + US Public = Mainstream won't stand for any new Bailouts [espec ones that that don't work?].

* RENSE > [CNBC] MARKETS CRASH: [Mark] FABER: BRACE FOR A GLOBAL "REBOOT" + A WAR.

ARTIC > FABER = any new "QE3" [+ follow-on?]is merely deferring a US Deficit, Econ crisis that will continue to expand + ultimately result in a War + TOTE ECON, SYSTEM COLLAPSE???
Posted by: JosephMendiola   2011-08-05 22:04  

#9  No one here seems to get it.

"Through multiple community development investment funds, Fannie Mae works to tear down barriers, lower costs and increase opportunities for homeownership and affordable rental housing for all Americans."

Fannie Mae is now a big player in the "spread the wealth" Obama scheme. Working as Obama designed it to.
Posted by: Snakes Pelosi3979   2011-08-05 18:48  

#8  I think we should ding Chuckie Shumer and Barney Fwank half their pay to cover Fannie Mae's losses. All in favor say "Aye".
Posted by: Old Patriot   2011-08-05 16:25  

#7  This is the sewage that should first be cut off and flushed from the budget.
Posted by: newc   2011-08-05 16:11  

#6  At this rate, the new credit card will be maxed out in a year.

Heh heh. Rrrr.
Posted by: swksvolFF   2011-08-05 15:43  

#5  Please tell me why these fraudsters who ran these quasi-governmental agencies into the ground and plundered them aren't in jail and the salaries/bonuses they looted haven't been reclaimed? That this hasn't been done tells us everything we need to know about our "governing elite". Oh that's right, our "governing elite" has decided it wasn't illegal to do what they did. Plundering taxpayer funds is legal. Why worry, it's just funny money anyway.
Posted by: Jeque Hupairong2828   2011-08-05 15:43  

#4  I guess Fannie Mae execs think we have forgotten how they helped create the subprime mess that took down the economy. Now they want to hold the taxpayers up for $5.1? What gall! This ought to be illegal. Thought Fannie Mae was in the equivalent of Chapter 11. Should have let Fannie fail.
Posted by: JohnQC   2011-08-05 14:58  

#3  Dodd-Frank? They were thick as thieves in creating this economic mess we are in.
Posted by: JohnQC   2011-08-05 14:53  

#2  One of the very few things I agree with in the Dodd-Frank bill is that banks should have skin in this game. If the banks had been required to keep 5 or 10 percent of the sub-prime mortgages they were making, they would have made sure Fannie, Freddie, the rating agencies and the investing community knew about the quality of the loans.

As it is Fannie and Freddie had every incentive (and their board members doubly so with their bonuses) to pretend that all those sub-prime loans were high-grade as they were rolled into mortgage-backed securities, the rating agencies pretended that the tranches of MBS's were all AAA, and the investment banks and brokerages could pretend that they were selling high-grade paper to the pension funds and small investors.

Until it all went kaboom.

Fannie and Freddie should indeed be rolled up. Having a quasi-government agency buy up and repackage mortgages is a great idea -- if everyone from the borrower to the banker to the packager to the rater to the broker to the investor is honest.

Human nature tells me that it's just another socialist utopian scheme.
Posted by: Steve White   2011-08-05 13:53  

#1  Fire 9 out of 10 of the 'managers'.

Go after all of the 'managers' that have bailed over the last 5 years, and pull back their golden parachutes.

Should be about the amount needed (SWAG) and would be just.

Then wind down this monster.
Posted by: Whiskey Mike   2011-08-05 12:29  

00:00