Wednesday, February 29, 2012

Fannie asks gov't for almost $4.6B after 4Q loss




WASHINGTON (AP) -- Mortgage giant Fannie Mae said Wednesday that it lost money in its fourth quarter and is asking the federal government for $4.57 billion in aid to cover its deficit.

Washington-based Fannie said it lost $2.41 billion in the October-December quarter, stung by declining home prices. Revenue was $4.53 billion.

The government rescued Fannie and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator - the Federal Housing Finance Agency - has controlled their financial decisions.

Taxpayers have spent more than $150 billion to prop up Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could top $259 billion to support the companies through 2014 after subtracting dividend payments.

Read more: http://hosted.ap.org/dynamic/stories/U/US_EARNS_FANNIE_MAE?SITE=NCAGW&SECTION=HOME&TEMPLATE=DEFAULT

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