Friday, August 5, 2011
Fannie Mae Bums Another $5 Billion from Taxpayers
Fortune 500’s fifth largest corporation just asked for another taxpayer funded loan (bailout); this just after they received billions during the financial crisis:
WASHINGTON - Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.
The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.
But hey, they have paid the taxpayers some of the money they borrowed:
Fannie Mae paid back $2.3 billion in dividends to taxpayers in the second quarter, reducing its net capital draw to $2.8 billion. Since the firm was seized by the U.S. Treasury in 2008, it has needed about $104 billion in government capital injections, although it has paid back about $14.7 billion in dividends.
Fannie Mae said its second-quarter loss "reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006."
It said expenses related to mortgage modifications to keep struggling borrowers in their homes also contributed to its loss.
I think we all recognize what kind of bum Fannie Mae is. We’ve all ran into this character before. You know, the guy who borrows money from you one day, then shows up and pays you all of what is owed or partial; then he comes back the following week asking for another loan; and this dance goes on until you’ve had enough. There is only one way to rid yourself of this panhandler and that is to kick his ass to the curb.