Friday, May 8, 2009
Anyone Remember Fannie Mae?
Well, you should America. Another huge loss in the 1st quarter: $23.168 billion down the drain. Since and including the 3rd quarter of 2007, Fannie Mae(Day) has lost $88.2 billion.
This latest loss puts them into the negative net worth area again: their assets are worth less than their liabilities. This is only possible of course because the Federal government (YOU, TAXPAYER !!!!) is back-stopping the whole derelict operation.
As a result, Mae(Day) has requested that YOU pony up another $19 billion to buy its preferred stock.
The bulk of the losses stem from increased their reserves for credit losses (paying out on guarantees) and foreclosure expenses. This accounted for $20.9 billion of the loss.
- Non-performing loans totaled $114.9 billion, up from $10.9 billion a year ago
- Carrying values of $6.4 billion in foreclosed properties, up from $4.6 billion a year ago
Fannie Mae(Day) and Freddie Muck represent over 40% of the mortgage universe. Buy bank stocks if you like, I wish you luck.
WE WILL GET STIFFED ON THESE JUST LIKE WE GOT STIFFED ON CHRYSLER. WHY IS NOBODY TALKING ABOUT THE $7 BILLION THAT WILL NEVER BE REPAID BY CHRYSLER!
Posted by MK at 1:37 PM