Fannie Mae seeks $8.4B in aid after 1Q loss

Gorilla.Steeze

Gorilla.Steeze

Active member
Can we liquidate these mofos already?
http://apnews.myway.com/article/20100510/D9FK02U00.html
Fannie Mae seeks $8.4B in aid after 1Q loss
May 10, 8:52 AM (ET)

By ALAN ZIBEL

WASHINGTON (AP) - Fannie Mae has again asked taxpayers for more money after reporting a first-quarter loss of more than $13 billion.The mortgage finance company, which was rescued by the government in September 2008, said it needs an additional $8.4 billion from the government to help cover mounting losses.Fannie Mae says it lost $13.1 billion, or $2.29 per share, in the January-March period. That takes into account $1.5 billion in dividends paid to the Treasury Department. It compares with a loss of $23.2 billion, or $4.09 a share, in the year-ago period.The rescue of Fannie Mae and sister company Freddie Mac is turning out to be one of the most expensive aftereffects of the financial meltdown. The new request for aid will bring Fannie Mae's total to $83.6 billion. The total bill for the duo will now be nearly $145 billion.Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie, lifting an earlier cap of $400 billion.Fannie and Freddie play a vital role in the mortgage market by purchasing mortgages from lenders and selling them to investors. Together the pair own or guarantee almost 31 million home loans worth about $5.5 trillion. That's about half of all mortgages.The two companies, however, loosened their lending standards for borrowers during the real estate boom and are reeling from the consequences.With the housing market still on shaky ground, Obama administration officials say it is still too early to draft any proposals to reform the two companies or the broader housing finance system.But Republicans argue the sweeping financial overhaul currently before Congress is incomplete without a plan for Fannie and Freddie. They propose transforming Fannie and Freddie into private companies with no government subsidies, or shutting them down completely.The legislation "touches nearly every corner of the economy," Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address over the weekend. "But these major contributors to the crisis are left unscathed," he added, singling out Fannie Mae and Freddie Mac.

Seriously this shit is getting old.
 
im sure a lot of people had my reaction- read it, be disgusted with our country, and dont have much to add that hasnt been said already
 
your problem is attempting to discuss politics and its implications on this forum... most of these kids are too young to know how to spell recession... and for the person blaming Obama, you have no fucking clue what you are taking about, this problem branches back for years, and just because of the real estate collapse and mounting issues it is finally being brought to late, after it is essentially too late... There are a few solutions, first and foremost, get rid of the FRB, a federal bank is doing nothing for our future but prolonging the inevitable and digging us a deeper hole... my more revolutionary, drastic tactics include getting rid of every member of congress and starting a more realistic inclusion of who our country is made up of by a large senate that representatives are drawn by casting lots... yea dont know why im wasting my time either, hardly anyone on here is bright enough to give a shit
 
Let them fail. Bailing them out one time was borderline, but seemed pretty necessary at the time. Now, it's obvious they are operating with the assumption that if they lose money they can run to the government. We can't set the precedent that if they're going down, they will be saved. More institutions will start operating with that assumption, creating even more damage.

The worst part about all of this is that the small businesses and institutions would never be in the discussion for federal aid. The reason that Fannie Mae was/will be bailed out (or at least what we're told) is that they put millions of people in jeopardy with their recklessness. So if you want to be rescued by the government, put as many people as possible at risk!

I know letting them fail will be terrible for the economy right now. FUCK IT! Our economy is almost completely built from trade deficits and over-inflated interest rates giving the perception of stability. Nothing is stable. It needs to crumble and be rebuilt through sustainable means. The longer we continue to operate this way, the worse it will get.
 
yea your probably right, I'm sick of these threads myself. I was just disgusted by this article. Rowen can you delete this please?
 
no dont get me wrong, i think its really good that you posted it. if NOTHING else, it will be exposed to people that wouldnt normally even hear anything about it.

that said, the chances of this turning into a halo match (red vs blue LOL im hilarious) are very high
 
oh man ask any private bank for a loan and then ask them again in two years and no one in their right mind would say yes.
 
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