Fannie Mae: a bottomless pit for U.S. taxpayers
Bloomberg has the goods on Fannie and they’re not good. Fannie’s regulator wants $19 billion from the U.S. government because the firm has negative capital. Fannie Mae had $23.2 billion in losses last quarter alone. And it says losses in 2009 will be worse than 2008. Nice.
Here’s the money quote: “Fannie says it does not see itself operating profitably for the foreseeable future.”
Video below.
Related article
Fannie Mae to Tap $19 Billion in Treasury Capital – Bloomberg
About Edward Harrison
- Fannie and Freddie need $75 billion 8 Jul 2008
- US government discusses Fannie and Freddie bankruptcy 9 Jul 2008
- Question: How is Fannie Mae a AAA company? 6 May 2008
- Freddie and Fannie are getting nationalized 5 Sep 2008
- Freddie and Fannie taken over by US government 7 Sep 2008
If the private mortgage insurers fail, Fannie will be forced to take large write downs. I don’t find this an unlikely scenario.