Fannie Mae Negative Networth November-19-09
Fannie Mae reported another big loss for its latest quarter and is seeking to tap Treasury Department funds for the fourth time to keep it afloat.
The Washington, D.C.-based company reported a third-quarter net loss of $19.8 billion, or $3.47 per share, compared with a net loss of $29.4 billion, or $13 per share, in the same quarter a year ago. The loss was the result of $18.8 billion in credit-related expenses, more than offsetting $5.6 billion in revenue, Fannie Mae said.
It is Fannie Mae’s ninth straight quarterly loss and keeps the company’s net worth below zero.
Fannie Mae has requested an additional $15 billion from the Treasury Department’s $200 billion lifeline established to keep the company afloat. To date, it has made three draws from the fund totaling $44.9 billion.
Fannie Mae will remain dependent on government funding for some time to come. It expects to continue to have a negative net worth in future quarters and says it will need to continue drawing from Treasury funds.
http://kpbj.com/headlines
The Washington, D.C.-based company reported a third-quarter net loss of $19.8 billion, or $3.47 per share, compared with a net loss of $29.4 billion, or $13 per share, in the same quarter a year ago. The loss was the result of $18.8 billion in credit-related expenses, more than offsetting $5.6 billion in revenue, Fannie Mae said.
It is Fannie Mae’s ninth straight quarterly loss and keeps the company’s net worth below zero.
Fannie Mae has requested an additional $15 billion from the Treasury Department’s $200 billion lifeline established to keep the company afloat. To date, it has made three draws from the fund totaling $44.9 billion.
Fannie Mae will remain dependent on government funding for some time to come. It expects to continue to have a negative net worth in future quarters and says it will need to continue drawing from Treasury funds.
http://kpbj.com/headlines
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