Thursday, November 5, 2009

Fannie Mae loses $19bn in one quarter of one year (FNM)

That's FT Alphaville's headline, making a rather pointed point.
Here's their version of the story:

Nineteen BILLION dollars - that’s how much government sponsored entity Fannie Mae lost in the third quarter of 2009, according to the mortgage lender’s 10-Q filing with the SEC on Thursday.

That marks a ninth consecutive quarterly loss for the lender - which it accompanied with a request for a fresh $15bn bailout from the US Treasury.

Fannie Mae’s net worth has (yet again) fallen below zero, forcing it to go hand-outstretched for the fourth time to the Treasury, with which it maintains a $200bn line of credit. If the lender’s net worth were to stay below zero for more than 60 days, it would be forced into receivership.

And as Reuters pointed out:

Fannie Mae, which posted $101.6 billion in losses over the previous eight quarters, has already taken $44.9 billion in federal aid since April.


Here are details from the filing, emphasis FT Alphaville’s...MORE

Here's the nuts and bolts, from Bloomberg:

It is time to get rid of a few Senators. Let's start with the chairman of the Senate Banking Committee.

[more formally, The United States Senate Committee on Banking, Housing, and Urban Affairs -ed]