Fannie Mae Seeks Additional Funding After Q1 $13.1 Billion Loss
Monday, May 10, 2010 at 9:34 am
This morning, Fannie Mae — a government-sponsored enterprise that buys mortgages on the secondary market and that made $72 billion in losses last year — reported a first-quarter loss of $13.1 billion. The company, under a governmental conservatorship, said it would seek $8.4 billion from the Treasury.
The company notes: “Due to current trends in the housing and financial markets, we continue to expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement.”
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