Fannie Mae Seeks $7.8 Billion In Additional Federal Aid To Stay Afloat

WASHINGTON - Fannie Mae , the biggest source of money for U.S. home loans, on Tuesday reported a $5.1 billion third-quarter loss and said it would seek $7.8 billion in additional federal aid to stay afloat.

Fannie Mae, which was seized by the government in September 2008, said the loss was attributed to continued weakness in the housing market and credit-related expenses on home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.

Fannie Mae has drawn $112.6 billion in bailout funds from the Treasury Department since 2008 and has paid $17.2 billion to the government in the form of dividends.

Fannie Mae and its smaller rival Freddie Mac were seized by the government as losses on subprime mortgages threatened insolvency. The government has pledged unlimited funds to keep the firms afloat through the end of 2012.

(Reporting by Margaret Chadbourn; Editing by Leslie Adler)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[cureyourosity]

11:40 AM on 12/09/2011

Well the DEMS didn't want Fannie & Freddie to be regulated back in 2002 when the GOP proposed it and now they're hemorrhaging cash and this dinosaur is still being kept afloat by the government. According to other articles it's $14 Billion they are seeking.
http://www.theatlantic.com/business/archive/2011/11/fannie-and-freddie-need-another-14-billion-but-losses-may-be-slowing/248186/#

Any entity the government owns they're unwilling to cut it off no matter how much of a burden it is. If Fannie & Freddie were privately owned they would've been belly up decades ago! Another fine example of fiscal irresponsibility.

[Flight]

08:37 PM on 11/09/2011

Sorry, they already had a shot at the TBTF claim. I didn't think they deserved a bailout then, but certainly another trip to taxpayer pockets would be an automatic NO!

[Altario]

08:30 PM on 11/09/2011

This article sitting right next to the article on the Fannie and Freddie exec bonuses. How nice.

[Olderandwiser55]

10:24 PM on 11/09/2011

I know-but they might have combined them.....

[nopilikia]

08:08 PM on 11/09/2011

AmericanTaxpayer already has 112 plus billion in the game.......let the Wall Street banksters and their top 1% bankster buddies pitch in.

[inthedesert]

07:03 PM on 11/09/2011

This should have been front page news on HP...instead it's hidden here. LOL.

[Janine547]

06:47 PM on 11/09/2011

Baroke Obama is more than willing to pump in a few more billion(s). Fannie Mae, Freddie Mae and Solyndra, whats the difference?

[sheila]

12:24 PM on 11/09/2011

BEFORE GIVING THEM ONE CENT, DEMAND THAT THEY RESTORE PACE LOANS!!

It is a crime against America that the crooks at FHA have prevented us from getting low-interest loans to retrofit our homes and businesses for energy efficiency and solar power, which are repaid through the property tax system. Absolutely outrageous, corrupt and destructive to our economy on about 10 levels - they are preventing our property values from increasing, they are preventing us from saving billions of dollars on energy bills, they are preventing hundreds of thousands of local, American jobs from being created and they are stifling the transition to a clean energy economy that is reliable, affordable and OWNED BY US.

Not one cent until PACE is flourishing again.

[carleronn]

11:56 AM on 11/09/2011

Where's the seperate bill Barney and Chris promised to address the two quasi-government agencies when they rammed through Dodd-Frank?

[carleronn]

11:54 AM on 11/09/2011

So all of the private entities have paid back their TARP debt but Fannie and Freddie keep suckling on the federal teat....great

[cats530]

11:58 AM on 11/09/2011

That's a lie that they have paid back TARP.

http://www.nakedcapitalism.com/2011/10/debunking-the-paid-back-the-tarp-myth-banks-should-be-paying-over-300-billion-a-year-in-systemic-risk-insurance.html

[olddognewtrick]

10:33 AM on 11/09/2011

Just because they ask...doesn't mean they should get. Let the execs kick in some gas money!

[Brookland Jones]

10:30 AM on 11/09/2011

Gawd, what a bunch of C R A P. Why does the government keep bailing these companies out?????? Why do the company executives keep getting bonuses??? Makes no sense. No sense at all! Heading in a downward spiral to nothingness at the rate our government is going.

[cats530]

11:58 AM on 11/09/2011

It makes perfect sense. All the Goldmanites and other floatsam and jetsam circulate between politics, "regulation," lobbying and high-powered positions in private TBTF firms.

[Peanut Santiago]

03:33 AM on 11/10/2011

The politicians (yes most of them on both sides) are bought and paid for by the oligarchs, big corporations, banks, and Wall Street.

The politicians serve THEM and not America or its people.

[Debs Lockwood]

10:25 AM on 11/09/2011

No more bail outs. Its sink or swim time, slash your bonuses you don't deserve and revamp your system. No more hand outs, its unacceptable and we helped you already and you did nothing in return to help others , instead you gave yourselves bonuses. I suggest you use them bonuses as a way to rebuild yourselves. As a taxpayer I say NO NO NO!

[VFausone]

09:04 AM on 11/09/2011

I hear "Jaws" music - how will the government bail these losers out one more time without a nationwide revolt haha?

[brandon20678]

09:02 AM on 11/09/2011

So they want more of our money after giving executives millions of dollars

[Yam716]

08:52 AM on 11/09/2011

Just say NO! To Fannie Mae!