What’s new from Fannie Mae? Well, guess what, they are now asking the U. S. Treasury for $15.2 billion more and this is (after the bailout).
The US government-controlled Fannie Mae reported a loss of 25.2 billion dollars in the fourth quarter driven mainly by the effects of a prolonged housing slump and a global financial crisis.
It had a third-quarter loss of 29.0 billion dollars. For the full year of 2008, the company posted a loss of 58.7 billion dollars, almost 27 times higher than the 2007 loss of 2.1 billion dollars.
Fannie Mae said it submitted a request Wednesday for 15.2 billion dollars from the Treasury “in order to eliminate our net worth deficit as of December 31, 2008.”
“We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth,” the company said in a statement.
For the rest of the story. (RIP Paul Harvey)
Now, watch the video below from late 2004 how the regulatory guy who was trying to put a stop to the lending practices and fraud in Fannie Mae – how he is being berated and attacked by these people who are supposed to be representing the people of America. We have been had. And had bad.
Note: Mr. Arthur Davis shown on this video was a man and stepped up and said he was wrong in his comments at the time and for that he has my admiration. I don’t know of any other person who is shown who has done that.
H/T: Jammie Wearing Fool