View Full Version : Fannie Mae loss widens, asks taxpayers for $7.8B

11-10-2011, 02:45 AM
Fannie Mae loss widens, asks taxpayers for $7.8B

WASHINGTON (AP) Mortgage giant Fannie Mae is asking the federal government for $7.8 billion in aid to cover its losses in the July-September quarter.
The government-controlled company said Tuesday that it lost $7.6 billion in the third quarter. Low mortgage rates reduced profits and declining home prices caused more defaults on loans it had guaranteed.
The government rescued Fannie Mae guandaxing hardware products (http://en.trade2cn.com/companyShop/26181950.html) and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator has controlled their financial decisions.
Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could reach up $220 billion winchance solar (http://en.trade2cn.com/companyShop/25966316.html) to support the companies through 2014 after subtracting dividend payments.
Fannie has received $112.6 billion so far from the Treasury Department, the most expensive bailout of a single company.
Michael Williams, Fannie's president and CEO, said Fannie's losses are increasing for two reasons: Some homeowners are paying less interest after refinancing at historically low mortgage Minqing Rising Tile (http://en.trade2cn.com/companyShop/26611568.html) rates; others are defaulting on their mortgages.