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Fannie Mae asks for another 8.4 billion after, once again, experiencing a loss
Nothing to say on this really, except that Bernanke will be more than happy to oblige every and all requests which will further his goal of destroying the dollar and bring the dollar down to 1.0000 ER against his Zimbabwean brother from another mother.
May 10 (Bloomberg) -- Fannie Mae, the mortgage-finance company operating under federal conservatorship, said it will seek $8.4 billion in aid from the U.S. Treasury Department after reporting an 11th-straight quarterly loss.
The company lost $11.5 billion in the first three months of this year, it said today in a Securities and Exchange Commission filing. Fannie Mae had posted $136.8 billion in losses in the preceding 10 quarters, and the new aid request would bring its total draw from the Treasury to $84.6 billion since April 2009.
Fannie Mae said the quarterly loss was largely attributable to new accounting rules that required the company to move $1.5 trillion in mortgage guarantees to its balance sheet.
Shares of Washington-based Fannie Mae rose 4 percent to $1.07 in New York Stock Exchange Composite trading at 10:58 a.m. after climbing as much as 11 percent earlier.
Also expect the market in bonds, stocks and CDS to remain largely decoupled in spite of the falling EUR/USD ER for the period until the swap facilities become operational and 149585th dollar devaluation begins. Also it would not surprise me at all if the swap facility is structured by offering no fixed duration of swaps, and no fixed rates.
On another, more on topic, note given that nothing can keep the FX volatility down and nothing can re-inflate home values except outright publicly announced hyperinflation policy and or 0% interest rates NINJA loans for everything that has a pulse and is a carbon based life form [although not a make-or-brake requirement for getting the mortgage], expect more tax payer subsidies going to Fannie Mae and Freddie Mack in the upcoming months/years/decades.
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TY, Cheeky, clarifying insanity! Stay Sane in a Lost World my friend. as far as captcha, wala!
Why is fannie still publicly traded???
P.S The captcha question still broken. On giving a correct answer of -120 I get the following response:
Math question cannot be longer than 3 characters but is currently 4 characters long. At which point I hit submit a second time and wala!
nice housing chart at CR
Fannie, Freddie, FHA REO Inventory Surges 22% in Q1 2010$136.8 billion in losses in the last 10 quarters and share prices went up? Can I get a face slap?
My exact reaction...
So when exactly will the USD and the Zimbabwean currency achieve parody? :)
parody they have already achieved, but if you meant parity; well all i can say is this; on a long enough timeline the survival rate for everyone and everything drops to 0.
I've heard that.
Best F'ing poster on the Net! Seeing your socialist icon lights up my day and cheers up my sorry CRE ass.
And for the the regular shellackings you give around here, you can be a prick, too! Thanks for the solid insight - and here's to good health. \ shellack on\
Always enjoy reading your posts, CB. Very informative.
CB. Still hungry, you need to feed us more. Feel free to hammer out a few chapters or even a book... Always interested in your take, thanks.
CB so happy you are back.
working on adoption papers :)
How do these central bank swaps work and what are their purpose in this case?
Thanks
What’s a swap line?
A good place to start is by looking at what, exactly, a currency swap line is. A currency swap is a transaction where two parties exchange an agreed amount of two currencies while at the same time agreeing to unwind the currency exchange at a future date.
Consider this example. Today the Fed initiated a $40 billion swap line with the Bank of England (BOE), meaning that the BOE will receive $40 billion U.S. dollars and the Fed will receive an implied £22 billion (using yesterday’s USD/GBP exchange rate of 1.8173).
Currency Swap:
An underlying aspect of a currency swap is that banks (and businesses) around the world have assets and liabilities not only in their home currency, but also in dollars. Thus, banks in England need funding in U.S. dollars as well as in pounds.
However, banks recently have been reluctant to lend to one another. Some observers believe this reluctance relates to uncertainty about the assets that other banks have on their balance sheets or because a bank might be uncertain about its own short-term cash needs. Whatever the cause, this reluctance in the interbank market has pushed up the premium for short-term U.S. dollar funding and has been evident in a sharp escalation in LIBOR rates.
The currency swap lines were designed to inject liquidity, which can help bring rates down. To take the British pound swap line example a step further, the BOE this morning planned to auction off $40 billion in overnight funds (cash banks can use on a very short-term basis) to private banks in England.
In effect, this morning’s BOE dollar auction will increase the supply of U.S. dollars in England, which would work to put downward pressure on rates banks charge each other.
Consistent with this move, the overnight LIBOR rate fell from about 5.03 percent yesterday to 3.84 percent today.
The bottom line is that the Fed, by exchanging dollars for foreign currency, has helped to provide liquidity to banks around the world. This effort can help to bring interbank rates back down at a time when restrictively high rates can choke off access to financing that banks and other businesses need to operate.
By Mike Hammill in the Atlanta Fed’s research department
reminds me a little of check kiting,, which I was very good at in my younger years!
Thanks for that.
Cheeky rocks! Thank you so very much for the large quantity of information.
Thanks!
Sincerely,
The Computer Geek who Wants to Learn this Crap
Much obliged.
One of my clients is trying to convert his construction loan to a conventional loan now that construction on his home is complete.
PNC will not offer him anything longer than a 2yr balloon (interest only, adjustable rate, pegged to prime +0%). PNC tells him Fannie/Freddie won't purchase anything in the 30 year fixed world right now.
Scary, if true, for two reasons. 1) The gubermint knows things are getting worse in RE, and won't make more long term bets. 2) For some reason, the gubermint WILL back a 2 year guaranteed to default mortgage. WTF?
they need the land sooner than later
They should break up and launch parts as IPO's and turn the crappy parts over to the taxpayers.
.......all parts of a dead carcass are crappy. So we'll take the whole load. We got this disease as an Xmas Eve gift last year. It's got nowhere to spread. Can't wait for next Xmas to see what's in the stocking. Car company, pension fund, a couple bankrupt States....
And the private member bank Federal Reserve has illegally committed how much of this paper junk on the laps of the USA taxpayer? Anyone know?
Wizard of Oz: Why, anybody can have a brain. That's a very mediocre commodity. Every pusillanimous creature that crawls on the Earth or slinks through slimy seas has a brain. Back where I come from, we have universities, seats of great learning, where men go to become great thinkers. And when they come out, they think deep thoughts and with no more brains than you have. But they have one thing you haven't got: a diploma.
All agency MBSs are purchased by the FED. That should amount to 1.5 T- 2 T bucks.
Not to worry though... all that MBS is backed by Agency debt guranteed by the U.S. Governement. It's all good. Bennie Mae said so.
If one doesn't get the circular logic here, please call Beenie and the boys at 1-800-I-DONT-GIVE-A-CRAP-ABOUT-TAXPAYER-MONEY.
It's a long number, but it's well worth it.
And we have to guess, don't we Cheeky? A Fed audit is in order!
A little off-topic but crucial...
Urgent: Deepwater Horizon Spill Solution
Hi Everyone. Please see:
http://www.squareandc.net/
This is me and I have a “Eureka” moment breakthrough to help solve the Deepwater Horizon crisis.
Please publicize this URL widely. E-mail it to your contact lists, send it to your senators, appropriate contacts in media, post it on other blogs like oil drum where you might be a member, industry contacts etc. Time is of essence and the solution is awesome.
If Tyler or Marla see this, they can mail it to higher contacts in media or put it somewhere on the site. I’d even pay for a prominent ad spot for the day if needed.
I’m getting it out on as many outlets as possible.
I know there are folks here from the industry or tangentially or historically connected with it. Please don’t e-mail me for details at this point, will take too much time to respond.
If you’ve read any of my comments, you know I’m sane. Right? ;-)
It’s real and needs to get seen/heard at the highest/right places.
Thanks in advance.
VivekAnand
For technical discussion post your solution at the oildrum.com.
There are perople from the oil industry who have technical experience and possibly connections to the industry.
Oye haramzadeh! don't be wasting precious bandwidth here. Guys like you give the rest of us a bad name... sheeeeessh.
probably logs the IP's of all ZHers stupid enough to click on the link like I just did. There is no proposed solution on the website, only a "call me!" link...
There where to many fish in the GOM to start with.
Torch that oil and have a Friday night fish fry.
As with all oil leaks, they should have torched it the second it surfaced; when it was small and volatile. I can guarantee that some roughneck covered in crude, spit tobacco, and said, "Light that sum bitch up now when you can." As with nearly all oil spills, (I have worked at several, but none anywhere near this magnitude obviously), enviromental beaurocrat types hem, haw, and stand around with their thumbs in their asses while the problem gets worse. By the time the dumbasses consented to letting them boom off sections and try to light it up, it was too late. Typical.
Hey CB,
It's refreshing to read you posts on ZH.
Hope you become a regular.
Cheeky was drafted from the comments section by popular demand many moons ago and then became quite ill. It's very nice to have our Cheeky Bastard back.
Thanks Cheeky for two posts in 24 hours. Keep them coming. Our man in Amsterdam.......er........Europe. :>)
http://www.youtube.com/watch?v=6O5BfnhmT2A
reference at 3:11
thank you CD. sure the posts will come more regularly then in the past months now that the body answered favorably to the most beautiful spring in the last couple of years. its nice to be back among you people, although you are just 1 and 0 put written on the interface [but not really].
more ones than zeroes in this community.
Maybe they should change their name to Fanny My
Good to see you back in form Cheeky
Meanwhile
http://www.youtube.com/watch?v=wcwTSjxWemA
Which leads to
http://www.youtube.com/watch?v=0EqqSilnn7s
http://www.youtube.com/watch?v=40mUjEq5chs
Hey dude. Thanks. I am a regular [contributor] but have not put up a post since November last year. I will try to contribute more now that i feel somewhat better.
Cheeky, not to ask a personal question, but what were you suffering from? Whatever it is, I wish you the best. Please keep up the posts and frank commentary.
Ditto that. I am new to posting here, but have been lurking for quite a while. I enjoy both your posts and comments immensely. Best of luck to you in regards to your health.
Thank you. I have problems with the lymph nodes, throat and lungs. The lymph nodes are being taken care of, the problem in the throat soon afterwards and the lungs; i just have endobronchial polyps which are relatively easy to treat in comparison to the first two.
Well thank you for the comment and i will try to post more often than i did in the recent months.
and some of us thought you were at the Diego Garcia black site
Hope that everything works out with your health