The other shoe drops – Fannie Mae asks for $8.4 billion
A few days after Freddie Mac requested $10.6 billion, Fannie Mae has asked for $8.4 billion:
Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that due to trends in the housing and financial markets, the company expects its deficits to continue.
The government-controlled mortgage giant announced Monday that it lost $13.1 billion applicable to common shareholders in the first quarter of 2010.
The request cames just four days after Fannie’s twin Freddie Mac also asked for a handout – to the tune of $10.6 billion – after posting an $8 billion quarterly loss.
Don’t forget, this is off budget money – even though it adds to the deficit, its not counted – yeah, you figure it out.
Also remember that while Democrats rail against Wall Street and it’s culpability in the financial collapse, it was Freddie and Fannie which were implementing the policy of the US Government (namely the Community Reinvestment act which essentially gave them license to push and buy up sub-prime mortgages).
In using Fannie and Freddie to prop up the mortgage market, the government in December lifted a $200 billion limit on their bailouts, essentially giving the twin housing lenders a blank check. Fannie Mae has already received $76.2 billion from the federal government and Freddie has gotten $50.7 billion.
Both of these institutions, controlled totally by government, are still loaded to the gills with toxic assets. And government is using the smoke screen of financial regulation to attempt to hide the problems that Freddie and Fanny have. Blank check – nice fix, eh? It’s your pocket into which these two organizations are dipping.