Effed By Fannie, Again
Fannie Mae – the “butt buddy” of Rep. Barney Frank and co-author of our latest (and perhaps greatest) government-inspired national disaster – reported a whopping quarterly loss of $23.2 billion today.
Yup … that’s $23.2 billion.
The astounding loss was the result of Fannie’s first quarter under government ownership, which frankly makes the $2.2 billion it lost prior to getting bailed out (and then assimilated) look like chump change.
Not surprisingly, Fannie said it would avail itself of $19 billion from the Treasury Department to cover its losses – which is on top of the $15.2 billion it requested earlier this year.
Oh … and the taxpayer-funded gravy train isn’t stopping there – not by a long shot.
“Due to current trends in the housing and financial markets, we expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from the Treasury,” the company said in its report.
Awesome! Can’t wait!
Oh, and this is just Fannie “corporate” debt – there’s hundreds of billions more in toxic assets out there associated with this big, bad government bitch and her equally misbehaved little brother, Freddie Mac.
But don’t worry, even though we haven’t come close to seeing the bottom of this rabbit hole, President Barack Obama and Rep. Frank are already expanding the same failed lending practices that got us into this mess in the first place …
Comments
By CSOL guinea on May 8th, 2009 at 9:54 pm
I believe that it is sedition for our “well intentioned” government to allow these catastrophic companies to even remain operating without any new regulations or without oversight. Frank, Dodd, and anyone else in the government that have had their hands in this cookie jar have pulled a bigger fraud than enron and no one does a thing…
By lou on May 9th, 2009 at 7:21 am
Whoa Fits. There is so much more to this story, you are missing the point. Yes Fannie lost money, she was supposed to for her master.
Fannie Mae, Freddie Mac, Enron, Circuit City, Countrywide Mortgages, GM and Chrysler have a link with the following banks that require a capital infusion: Bank of America, Wells Fargo, Citi, GMAC, Bank of NY Melon, US Bancorp, American Express, Suntrust, Regions, KeyCorp, and Morgan Stanley.
All of the above have a relationship with AIG.
And the connector to all of them is the parent company FMR, LLC.
By lou on May 9th, 2009 at 7:22 am
oops ,meant to say… FMR is ” too big to fail”
Google em and use the SEC Edgar tool.