This is what happens when the government gets involved in business. Fannie Me is what is known as a government sponsored enterprise. That means that when they make money they get to keep it and pass the profits along to their executives. The beauty of it is, when they lose money, the executives still get rich and the taxpayers bail them out. Naturally, they always lose money. And yet again, they’re coming back for more.
Fannie Mae reported a net loss of $6.5 billion for the first quarter as a weakening housing market dashed hopes that the company had stabilized.
Fannie said Friday it would ask the government for a fresh taxpayer infusion of $6.2 billion after paying dividends to the Treasury. The loss follows net income of $73 million during the previous quarter.
Fannie’s loss came as it increased its loan-loss reserves after it revised down its home-price forecast for 2011, and took bigger-than-expected losses on the sale of foreclosed properties. The mortgage-finance giant booked $11 billion in credit-related expenses, up from $4.3 billion last quarter.
“Right now, we’re not seeing a lot of good things in the residential real-estate markets,” said David Hisey, acting chief financial officer for Fannie Mae.
Is there anything government doesn’t get involved in that it doesn’t screw up? Seeing that we’re in a double dip housing recession, I expect this to get worse before it gets better.
Update: News Copy linked – thanks!
Update 2: Linked by Doug Powers at Michelle Malkin – thanks!
Tags: bailout, double dip, fannie mae, losing, real estate, taxpayer
Is everyone in Washington DC drinking the Kool-Aid?
Unemployment “greater than expected”.
Housing losses “bigger than expected.”
Could it be they are actually listening to Joe “Recovery Summer II” Biden?
Maybe if reporters could get out of their cozy little studios and talk to people in the real world we might get a true story on what is expected: Double dip recession, inflation, and a whole lotta pain out there.
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The worse they are the more they get. We’re making more Dems rich “working” at Fannie Mae. That way they can give more $ to Dem election campaigns. What a wonderful system!
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[...] Fannie Mae Still Costing Taxpayers: $8.5 Billion In The Red Posted on May 8, 2011 by Bob Fois Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.Powered by WP Greet Box WordPress PluginWhen is a bailout a final bailout? Fannie Mae needs U.S. taxpayers to cover an additional $8.5 billion shortfall, reported the AP, due to declining home prices causing more defaults on loans guaranteed by the mortgage giant. The total bailout if Fannie Mae is approaching $100 billion. The combined Freddie Mac and Fannie Mae bailouts now total $259 billion. Multiple sources on Wall Street have been repeating since the start of the year that The Student Loan Corporation is next. For now, the masters of the fiscal universe appear to be saving college student loans from the carnage of debt — but it's appearing endemic of a deeper systemic problem as Wall Street investors are leveraged into the fate of Sallie Mae. The same thing was done to the mortgage industry yet how soon Wall Street forgets. Weasel Zippers was more blunt in describing the fiscal punishment of Fannie Mae begging for more help from the U.S. government. I was surprised this story from Friday's news cycle didn't get more attention. Breitbart's Big Government gets the joke. But where is rightful on indignation on FOX News? Why is so much time being wasted on a week-old news cycle? Reuters makes reference to "the largest U.S. residential mortgage funds provider" reporting "a net loss attributable to common shareholders of $8.7 billion, or $1.52 per diluted share, in the first quarter" — as if the "shareholders" don't suffer from a "moral hazard" being given a blank check from the Federal government every wretched time the economy recesses? The Lonely Conservative spelled out what's wrong with this picture. [...]
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[...] (h/t Lonely Conservative) [...]
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[...] (h/t Lonely Conservative) [...]
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