Fannie Mae: a bottomless pit for U.S. taxpayers

By Edward Harrison On May 8, 2009

Bloomberg has the goods on Fannie and they’re not good. Fannie’s regulator wants $19 billion from the U.S. government because the firm has negative capital. Fannie Mae had $23.2 billion in losses last quarter alone. And it says losses in 2009 will be worse than 2008. Nice.

Here’s the money quote: “Fannie says it does not see itself operating profitably for the foreseeable future.”

Video below.

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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3 Comments

pwm says 16 years ago

If the private mortgage insurers fail, Fannie will be forced to take large write downs. I don’t find this an unlikely scenario.

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