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Friday, November 06, 2009

State-directed during housing bubble inflation, today's state-run Fannie Mae needs billions more in bailout funds since Government takover

(Courier Mail) -- ...The state-controlled Fannie Mae reported a net loss of $US18.9 billion ($A20.74 billion) in the third quarter on Thursday, 35 per cent smaller than a year ago but sharply higher than its $US14.8 billion ($A16.24 billion) loss in the second quarter...Fannie Mae said that, at the end of the third quarter, the company was in the hole for $US15 billion ($A16.46 billion) and, as a result, had turned to the Treasury Department on Wednesday to seek public funds to keep it operating. "The acting director of the Federal Housing Finance Agency submitted a request for $US15.0 billion dollars from Treasury on the company's behalf. FHFA has requested that Treasury provide the funds on or prior to December 31." Fannie Mae and its fellow state-controlled mortgage lender Freddie Mac have already received hundreds of billions of dollars as part of a Government takeover aimed at avoiding their collapse in the wake of the subprime mortgage crisis...LINK

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