Freddie Mac Less Negative In 2009. Fannie Mae, Not So Much
Freddie Mac not asking for government to bail them out, again. Let’s give them a round of applause. [for now]
Freddie Mac posted a smaller loss last year than in 2008 and said for the third consecutive quarter that it won’t need to ask the government for additional bailout funds. But the company says conditions could worsen as foreclosures pick up later this year.
The mortgage company posted a net loss of $6.5 billion in the fourth quarter of 2009 and $21.6 billion for the full year, excluding dividends paid to the government. While those losses remain daunting, they are an improvement from 2008, when the company posted a loss of $23.9 billion in the year ago fourth quarter and $50.1 billion for all of 2008.
…And you can stop now. Fannie Mae seeks $15.3B in gov’t aid after 4Q loss. [short lived]
Fannie Mae needs another $15 billion in federal assistance, bringing its total to more than $75 billion. And worse, the mortgage finance company warned its losses will continue this year. The rescue of Fannie Mae and sister company Freddie Mac is turning out to be one of the most expensive aftereffects of the financial meltdown. The new request means the total bill for the duo will top $126 billion.
