Fannie Needs $10.7 Billion In New Treasury Capital
And the green shoot hits just keep on coming. If you wondered why FNM stock has been flying, here is your answer (and which the nearly departed Lockhart seems to have known a few days in advance:
Aug. 6 (Bloomberg) -- Fannie Mae, operating under a federal
conservatorship, asked the U.S. Treasury for a $10.7 billion
capital investment as its eighth straight quarterly loss once
again drove the mortgage-finance company’s net worth below zero.
A second-quarter net loss of $14.8 billion, or $2.67 a
share, pushed the company to request its third draw on a $200
billion lifeline from the government, Washington-based Fannie
Mae said in a filing today with the Securities and Exchange
The company, which posted $86.8 billion in losses over the
previous seven quarters, has already taken $34.2 billion in
federal aid since April.
What a shroomed up circus this economy has become.