Fannie Mae needs bigger lifeline

[Javaman]

http://money.cnn.com/2011/11/08/news/economy/fannie_mae/index.htm?iid=HP_LN

NEW YORK (CNNMoney) -- Losses widened at mortgage giant Fannie Mae in the third quarter, forcing the government-controlled firm to request another $7.8 billion from the Treasury Department.

The company reported Tuesday a net loss of $5.1 billion, compared to a net loss of $2.9 billion in the second quarter. A year ago, Fannie Mae reported a net loss of $1.3 billion.

The current quarter's loss was driven mainly by continued delinquency issues in mortgages it had purchased or guaranteed before 2009. Additionally, Fannie Mae suffered from an increase in expenses related to foreclosed properties. Declining interest rates also contributed to the company's losses.

Fannie Mae's (FNMA, Fortune 500) latest request for Treasury funding brings its total bailout to $112.6 billion. This will require an annualized dividend payment to the government of $11.3 billion, more than the company has ever earned in annual net income.

more at link...

[lonestarnot]

1. Blows!

[Javaman]

2. I beg your pardon?

your point is?

[lonestarnot]

3. That situation just blows!

[Javaman]

5. ohhhhhhh okay...

it's all good.

I thought it was a shot at me. I had, for some bizarre reason, pasted my name as the title. I'm not this touchy, but I took it as a personal shot...

title: Javaman

title of first reply: blows.

:rofl:

Cheers!

[lonestarnot]

9. Egaad. I just now realized that!

:rofl: I'm sorry.

[City Lights]

4. And their executives were just rewarded millions in bonuses.

Where does the line form to apply for one of their executive positions?

[banned from Kos]

6. key sentence here --

"This will require an annualized dividend payment to the government of $11.3 billion"

That payment will go to the Federal Reserve (who owns bonds) and then they will return to the Treasury in January.

Net - still a profit for taxpayers.

[Klukie]

8. more to that key statement....

"This will require an annualized dividend payment to the government of $11.3 billion, more than the company has ever earned in annual net income."

[banned from Kos]

10. yeah, but $8 billion paid into Fannie and $11 billion paid back is net positive

for the taxpayer.

btw, when foreclosures stop the taxpayer gains will be huge.

[Klukie]

11. and when will the foreclosures stop?

[Lance_Boyle]

7. FU, FNMA

FOAD already, FFS.