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| Economy |
| Fannie Mae Heads Back to the Well $14.8 Billion Poorer |
| 2009-08-07 |
| From Fannie Mae's website. The link is a .PDF file. Why don't they just sell the sunuvabitch? From TFA: WASHINGTON, DC -- Fannie Mae (FNM/NYSE) reported a loss of $14.8 billion, or ($2.67) per diluted share, in the second quarter of 2009, compared with a loss of $23.2 billion, or ($4.09) per diluted share, in the first quarter of 2009. Second-quarter results were driven primarily by $18.8 billion of credit-related expenses, reflecting the ongoing impact of adverse conditions in the housing market, as well as the economic recession and rising unemployment. Credit-related expenses were partially offset by fair value gains. The company also reported a substantial decrease in impairment losses on investment securities, which was due in part to the adoption of new accounting guidance. Taking into account unrealized gains on available-for-sale securities during the second quarter and an adjustment to our deferred tax assets due to the new accounting guidance, the loss resulted in a net worth deficit of $10.6 billion as of June 30, 2009. As a result, on August 6, 2009, the Director of the Federal Housing Finance Agency (FHFA), which has been acting as our conservator since September 6, 2008, submitted a request for $10.7 billion from the U.S. Department of the Treasury on our behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and the Treasury in order to eliminate our net worth deficit. FHFA has requested that Treasury provide the funds on or prior to September 30, 2009. |
| Posted by:badanov |
| #3 What a moneypit. How much more of our money are they gonna need? All of it, I think. |
| Posted by: DarthVader 2009-08-07 10:41 |
| #2 Hi. We wasted all the money you gave us, so can we have some more? |
| Posted by: Anonymoose 2009-08-07 10:25 |
| #1 Why don't they just sell the sunuvabitch? 1. At this point we'd have to pay someone to take it. 2. It's a handy vehicle to shovel money out to reflate the property market. |
| Posted by: DoDo 2009-08-07 10:12 |