Nothing wrong with Fannie Mae that a little money will not fix
Buncha asshats -- from
Bloomberg:
Fannie Taps Treasury for $15.3 Billion More After a 10th Loss
Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss.
The mortgage-finance company posted a fourth-quarter net loss of $16.3 billion, or $2.87 a share, Washington-based Fannie Mae said in a filing yesterday with the Securities and Exchange Commission.
Fannie Mae, which owns or guarantees about 28 percent of the $11.8 trillion U.S. home-loan market, has been hobbled by a three-year housing slump that wiped 28 percent from home values nationwide and led to record foreclosures. The company, which posted $120.5 billion in losses over the previous nine quarters, and rival Freddie Mac were seized by regulators in September 2008.
�Our financial results for 2009 reflected the continued adverse impact of the weak economy and housing market, which has resulted in record mortgage delinquencies and contributed to our recording significant credit-related expenses and net losses during each quarter of the year,� Fannie Mae said in the filing.
For the full year, Fannie Mae�s loss widened to $74.4 billion from $59.8 billion in 2008.
The company�s shares, which peaked at $87.81 in December 2000, closed at 99 cents yesterday in New York Stock Exchange composite trading. The Treasury owns 79.9 percent of the company�s outstanding common stock.
So not only is Fannie getting the Fed to bail them out, the Fed is saddled with stock that is tanking in value. Time to let it fail, suffer the five years of chaos that will ensue and rebuild from there.
As it stands now, we will be getting five years of chaos regardless of what we do -- letting Fannie file will limit that chaos to the administrators and to those people who voluntarily went into a sub-prime loan. If we continue to prop up institutions like Fannie, the chaos will be shared by all taxpayers.
Posted by DaveH at February 27, 2010 2:02 PM