Home -> Law Blog Directory -> Bailout Blogs -> Calculated Risk

Bailout

: Calculated Risk

Fannie Mae Reports $15.2 Billion Loss

By Anonymous

Press Release: Fannie Mae Reports Fourth-Quarter and Full-Year 2009 Results

Fannie Mae reported a net loss of $15.2 billion in the fourth quarter of 2009 ... For the full year of 2009, Fannie Mae reported a net loss of $72.0 billion...

The fourth-quarter loss resulted in a net worth deficit of $15.3 billion as of December 31, 2009, taking into account unrealized gains on available-for-sale securities during the fourth quarter. As a result, on February 25, 2010, the Acting Director of the Federal Housing Finance Agency submitted a request for $15.3 billion from Treasury on the company?s behalf. FHFA has requested that Treasury provide the funds on or prior to March 31, 2010.
...
Although there have been signs of stabilization in the housing market and economy, we expect that our credit-related expenses will remain high in the near term due in large part to the stress of high unemployment and underemployment on borrowers and the fact that many borrowers who owe more on their mortgagees than their houses are worth are defaulting.
...
We expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury ...

I'm old enough to remember when $15 billion was a large number.

Full post as published by Calculated Risk on February 26, 2010 (boomark / email).