Thread: FANNIE MAE suffers massive loss, seeks more aid...

UNBELIEVABLE!!!, OUTRAGEOUS!! NOT ONE MORE PENNY FORM TAXPAYERS!!!

FAIL FANNIE FAIL!!!!

WASHINGTON (AP) -- Fannie Mae is seeking an additional $10.7 billion in government aid after posting another massive quarterly loss as the taxpayer bill from the housing market bust keeps growing.

The mortgage finance company, seized by federal regulators last September, posted a second-quarter loss of $15.2 billion, or $2.67 per share, including $411 million in dividend payouts. That compares with a loss of $2.6 billion, or $2.54 per share, in the year-ago period.

The government, which seized control of Fannie Mae and its sibling Freddie Mac last September, has already spent about $85 billion to prop up the two companies. Fannie Mae's new request from the Treasury Department will bring the total to nearly $96 billion. Freddie Mac is expected to report its quarterly results on Friday.

"We are dependent on the continued support of Treasury in order to continue operating our business," Fannie Mae said in a Securities and Exchange Commission filing late Thursday.

The results were driven by $18.8 billion in credit losses due to declining housing market conditions, made worse by rising unemployment. Nearly 4 percent of the loans Fannie Mae owns or guarantees were delinquent as of June 30, up from 1.4 percent a year earlier.

Fannie Mae and Freddie Mac play a vital role in the mortgage market by purchasing loans from banks and selling them to investors. Together, Fannie and Freddie own or guarantee almost 31 million home loans worth about $5.4 trillion. That's about half of all U.S home mortgages.

The two companies lowered their standards for borrowers during the real estate boom and are reeling from the bust. High-risk loans, now defaulting at a record pace, have come back to haunt the companies. Worse still, the recession is causing formerly reliable homeowners with good credit to default.

The Obama administration is expected to unveil its plans for Fannie and Freddie early next year. Options being considered include keeping the companies private, winding down their operations, merging them into a federal agency or separating out their bad mortgage assets into a new company backed by the government.

Meanwhile, the head of the federal agency that regulates Fannie and Freddie Mac, James Lockhart, is stepping down at the end of the month. Edward DeMarco, chief operating officer of the Federal Housing Finance Agency, was named acting director on Thursday.

DeMarco, 49 years old, has worked at the agency since October 2006. Before that, he worked at the Social Security Administration and the Treasury Department.

http://finance.yahoo.com/news/Fannie-Ma ... ?x=0&.v=10

http://www.pbs.org/wnet/ascentofmoney/

This was on PBS and was very good and in parts compared the US to Argentina and the collapse of Argentina. Evidentally Argentina was very high on the rung of financial stability until their country hit a huge bubble as well. What they did in hopes helping the economy is what the US is doing now.

Needless to say Argentina took a nose dive into ruins.

Fannie is not failing because of me. I paid my loan back in full and way ahead of time.

Dixie

Shouldn't Barney Frank be made to bail them out... from his own, personal resources, of course?

This all feeds into a 3rd world nation of renters. Fannie and Freddie covered half the loans in the U.S. a large portion of those loans were written outside of lending requirements and the speculative frenzy helped feed illegal immigration and artificially feed home prices.

With plug pulled on the economy, our investment accounts, jobs and homes the government and banks can no promote a government subsidized nation of low wage renters.

I work on lending and political fraud full time and warned of this trend several years ago that decent neighborhoods filled with homeowners would be replaced with low wage renters and that the empty homes would become a haven for crimes, vandalism, gangs and drug dealers and of course illegal immigrants.

What many people do not realize is that the loans were designed to default in order to leverage the assets and transfer them overseas and to offshore accounts ala Enron. In fact the whole scam was set up by Andrew
Fastow while at Contitnetal Illinois and them hired by Skilling of Enron hers' how the scam works a high risk mortgae is written and then converted into a fifncial instrument known as a Residential mortgage backed security RMBS. The rmbs can be muitplied about 30-60 time ther vaue of the mortgage do the math a $100,000 home is turned into 3-6 million in debt based assets. Another scam is to tranfer the mortgages into a poll take out credit insurance known as credit default swaps CDS and then foreclose on the homes payments made or not rather like burning the homes down with the homeowners in them to collect insurance settlements.

And just where does this cornicopia of mortgage bassed assets go? think China, Mexico, and other third world countries to build up manufacturing, tech and service and the countires that backed the debt China, The oil rich countires and the E.U. now effectively own the U.S. by funding the B.K. agreement known as the bailout or TARP.

So much for protecting the borders and protecting against Islamic extremism the bankers made an end run on our sovereignity while we were distracted by the war on terror and illegal immigration and China they just plain wrote a check for our nation with money looted from U.S. homeowners.

Am I saying not to protect the borders and secure the nation against terrorism? quite the opposite I'm saying beware the Trojan horse gift of funding our debt based spending and borrowing frenzy that drove our economy for well over a decade, spurred by the Fannie and Freddie "gift"
of homeownership.

Well Fannie Mae can kiss my Fannie Mae! These companies need to go BANKRUPT!! If I own a company and my business practices are so bad that it causes me to fail, THAT IS MY FAULT!! Obama can kiss my Fannie Mae as well!

Welcome to ALIPAC "gcollins"

Not only is China strong financially but they have built up their military while pulling down the bucks from us. It was brought out a couple of times in magazines. But still corporations continue to use them for their cheap labor force.

Just on a news brief the other day where they had siad Americans still make approximately 22 times more than the Chinese worker ,but that the Chinese still invest in the US and loan us money as well.