Fannie Wants More Tax Dollars
Fannie Mae has gone back the U.S. Treasury with its hand out asking for another $19 billion.
Fannie Mae has been operating under government conservatorship since September. It says its net loss in the first quarter were $23.2 billion, or $4.09 a share. The larger-than-expected loss has driven the company’s net worth below zero and has triggered a request for an additional $19 billion from the U.S. Treasury.
Fannie Mae took $15.1 billion from the treasury in March. It has a $200 billion federal funding commitment from the Treasury to help it handle loans and mortgage bonds that continued to deteriorate as the recession pushed more homeowners into foreclosure.
In company statements Fannie Mae said its net worth fell to negative $18.9 billion as of March 31, from $15.2 billion on Dec. 31, and $9.4 billion on Sept. 30.