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| Fannie Mae: Back to the Well for $100 Billion |
| 2009-03-02 |
| Insanity returns for another round of "What Can We do Differently This Time?" Fannie Mae's already-depleted shares took a new hit on Friday as it became clear that the biggest buyer of mortgages in the United States may need even more money. On Friday ratings agency Standard & Poor's analyst Kevin Cole said Fannie Mae is expected to need an additional $100.0 billion over the course of the year to maintain a positive net worth in 2009. Fannie reported on Thursday that it needs $15.2 billion from the government for the quarter to restore it to solvency because of larger-than-expected losses. Fannie's losses have piled up as defaults on home loans have soared. Last week, the government doubled its emergency funds for Fannie Mae and Freddie Mac, to $200.0 billion each, up from $100.0 billion -- a good thing since Cole expects Fannie will need $100 billion just this year. "Next quarter they're going to lose more money so they'll ask for more," Cole told Forbes. "I assume they'll be losing money for at least the next four quarters if not through 2010." Cole said there is a high probability that Fannie will need to draw down the entire $200.0 billion allotted to it by the government. He widened his 2009 loss per share estimate on Fannie to $20.02 per share up from $19.74. He maintained a $1 price target. |
| Posted by:badanov |
| #8 Is the Kansas Banana Slug (Politicus Sebelius) related to the Illinois Palm Crawler (Wormus Dailyum? |
| Posted by: Skunky Glins 5*** 2009-03-02 20:25 |
| #7 You laughed before, but now my Kansas banana farm bailout of $1 million seems like a small price to protect the free trade zone of Kansas banana farmers and protect the now indigenous Kansas banana slug, which would require an additional $500,000. |
| Posted by: swksvolFF 2009-03-02 17:05 |
| #6 wonder if they would just loan me a $1000? without having too kiss my own ass first |
| Posted by: rabid whitetail 2009-03-02 14:20 |
| #5 I remember how the donks freaked out when Bush asked for $87 billion for Iraq. It sounded like a lot of money back then but at least we knew where it was going. |
| Posted by: Ebbang Uluque6305 2009-03-02 12:27 |
| #4 Just today I was looking thru the "legal notices" in the Examiner Classifieds: pages and pages and pages of mortgage foreclosures, all originations dating from 2005-2006. Gah. |
| Posted by: Seafarious 2009-03-02 11:37 |
| #3 That is not 100 Billion you are short today, it is $400,000. And by next week shall be $500,000 Billion. And in two months, another $320 Billion. How long can ya keep it up? How long may you stand as an "Honerable" "solution"? What does China think? You obviouslly don't give a damn about US. You already pimped US out. |
| Posted by: newc 2009-03-02 03:37 |
| #2 If I told my bank I needed a gift of 1 million to "Stay Profitable" I'd be sitting in either Jail, or an insane ward. Or in Chicago. |
| Posted by: SteveS 2009-03-02 00:39 |
| #1 If I told my bank I needed a gift of 1 million to "Stay Profitable" I'd be sitting in either Jail, or an insane ward. |
| Posted by: Redneck Jim 2009-03-02 00:21 |