Fannie Mae Asks Government for $7.8 Billion More

I don’t get it… eight years ago Barney Frank told America Fannie & Freddie weren’t in crisis. In 2005 said there was no housing bubble. In 2010, a regulatory disaster called the Dodd-Frank bill was signed into law, but of course it did nothing to address Fannie & Freddie, which as we know were doing just fine because Frank told us so in 2003 and 2005. Now Fannie is back for more federal money. If this keeps happening I’m going to start thinking Barney Frank doesn’t have a clue what he’s talking about…

From Reuters:

Fannie Mae, the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat as a shaky housing market widened its third-quarter loss to $5.1 billion.

The government-controlled firm also attributed the deeper cash drain to losses on derivatives used to hedge its exposure to interest-rate swings and on expenses related to home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.

They probably need the extra taxpayer money to help pay for all those bonuses.

Author: Doug Powers

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