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Fannie Mae Posts Big Loss, Takes $15B in Bailout Cash

By Kevin Spak,  Newser Staff

Posted Feb 27, 2009 6:43 AM CST

(Newser) – Fannie Mae received $15 billion from Uncle Sam last night after reporting a $25.2 billion fourth-quarter loss, the Washington Post reports. The loss, caused mostly by sinking mortgage-related investments, brought the company’s 2008 losses to $59 billion. This marks the first time Fannie has dipped into its potential pool of $200 billion in federal aid; sibling Freddie Mac has received $14 billion and said recently it may ask for $35 billion more when it reports.

In this 2008 file photo, specialists gather around the post where their firm trades Fannie Mae prior to the opening bell at the New York Stock Exchange.
In this 2008 file photo, specialists gather around the post where their firm trades Fannie Mae prior to the opening bell at the New York Stock Exchange.   (AP Photo/Henny Ray Abrams, file)
President and CEO of Fannie Mae, Herbert Allison, Jr., testifies before a House Financial Services Committee hearing Sept. 25, 2008, on Capitol Hill.
President and CEO of Fannie Mae, Herbert Allison, Jr., testifies before a House Financial Services Committee hearing Sept. 25, 2008, on Capitol Hill.   (AP Photo/Kevin Wolf)
In this 2008 file photo, a sign in front of the Fannie Mae headquarters in Washington is seen.
In this 2008 file photo, a sign in front of the Fannie Mae headquarters in Washington is seen.   (AP Photo/Manuel Balce Ceneta, file)
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COMMENTS
Showing 2 of 2 comments
Guest
Mar 20, 2009 5:17 AM CDT
Fannie and Freddie are quasi-public. If mortgages are still so volatile, why are they still guaranteeing risky 90-10 mortgages? At least that's what the ads say, that they still have not returned to the normal 80-20 mortgages and certainly not to the more conservative 30-70 ones. So what're they waiting for? More government bailout of private enterprise? We are such welfare queens.
Guest
Feb 26, 2009 7:58 PM CST
Yeah, the government had nooo role in this crisis. Allll the free market's fault..

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