Fannie Mae: $8.7 Billion Loss, Asking for $8.5 Billion More from Taxpayers (how much, financial crisis)

[sanrene]

Geez, will this debacle never end? Why are the taxpayers (i.e. government) involved in the mortgage industry?

I know the answer - just a front to shield banks from defaults, bad loans.

Fannie Mae seeks $8.5 billion from taxpayers - Yahoo! News (http://ca.news.yahoo.com/fannie-mae-seeks-8-5-billion-taxpayers-215033804.html - broken link)

WASHINGTON (Reuters) - Mortgage finance giant Fannie Mae on Friday said it would ask for an additional $8.5 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider reported a net loss attributable to common shareholders of $8.7 billion, or $1.52 per diluted share, in the first quarter.

Including the latest request, the firm has taken about $100 billion from the U.S. government since it was seized in 2008, though it has also paid about $12.4 billion to taxpayers in interest.

[lifelongMOgal]

I wonder how much of that was from the January back-door bailout by Fannie Mae of BoA?

[florida.bob]

F & F hold about 90% of the mortgages in the Country. Why, because the people that wrote those loans, do not want to deal with the defaults, they only accept the profits from them. Hence, the losses are pushed off to the American people.

[sanrene]

Originally Posted by florida.bob

F & F hold about 90% of the mortgages in the Country. Why, because the people that wrote those loans, do not want to deal with the defaults, they only accept the profits from them. Hence, the losses are pushed off to the American people.

This should NOT be allowed to stand.

If a bank makes a loan to an unqualified applicant, the bank should eat the loss.

[Rick Roma]

Yes, libbies- it's Fox News. I challenge you to debunk anything they say here.....



YouTube - Democrats were WARNED of Financial crisis and did NOTHING

[HappyTexan]

That's just for 1st quarter..there's 3 more left in the year.

[AuDiBelle]

Just another wonderful effect of the Community Reinvestment Act, compliments of ACORN. When the banks balked at lowering their lending standards (and rightfully so), the gov't assured them that the risk wouldn't be theirs. The bankers and mortgage brokers went crazy loaning to anyone who could sign their name. The repeal of Glass Steagall in '99 didn't help either. Banks were then allowed to combine their commercial lending practices with their risky investment branches. We are all living with the aftermath of it now. Only the bankers made out well.

[Oerdin]

Of course it has loses when the government allows banks to off load all of they're risk on to the tax payers.

[alphamale]

Maybe barney frank will vote to give them more of our money to blow.

[AuDiBelle]

Originally Posted by alphamale

Maybe barney frank will vote to give them more of our money to blow.

Hey, the execs at F&F need their bonuses you know!