Inquiring minds are investigating Fannie Mae's stunning $72 billion loss for 2009 as well as new short selling curbs. The two are actually related. Let's take a look.
Please consider Fannie Posts $72 Billion Loss for '09
Fannie Mae reported a staggering $72 billion net loss for 2009, underscoring the challenges that still face the nation's largest mortgage financier and offering more grim news for taxpayers who may ultimately pick up the bill.
The Washington-based company posted a $15.2 billion fourth-quarter loss and said it asked the U.S. Treasury for another $15.3 billion to stay afloat, bringing its total bailout tab past $76 billion. The quarterly results were an improvement from the year-ago period, when Fannie reported a $25.2 billion loss, but the annual loss surpassed the year-earlier loss of $58.7 billion.
While some analysts warn that efforts to modify loans are simply postponing foreclosures and delaying losses, Fannie Chief Executive Michael Williams said the company remained committed to preventing foreclosures. "Our overriding objective is keeping people in their homes whenever possible," he said in a statement.
The government took over Fannie and Freddie nearly 18 months ago as rising loan defaults burned big holes in the companies' balance sheets. The government has agreed to absorb unlimited losses for the next three years and up to $400 billion after that. So far, the companies have taken a combined $127 billion in Treasury support, making this bailout one of the most expensive from the financial crisis.
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$72 billion "lost" into private pockets.
ReplyDeleteI don't know how this will work exactly, but I anticipate in the not to distant future that Fannie and Freddie will begin to tell people to just stay in their homes. Foreclosure will cease. You can't have millions of homes empty and millions more people homeless desperately roaming the streets and squatting in abandoned homes. That will create massive amounts of gun battles over property. During the depression people were kicked out of homes in droves and it created more desperation. I think that is why the feds took over Fannie and Freddie
ReplyDeleteSheep roam street
ReplyDeleteSmart photocopy money