May 10th, 2010
08:58 AM ET
5 years ago

Fannie asks for another $8.4 billion

New York (CNNMoney.com) – Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that due to trends in the housing and financial markets, the company expects its deficits to continue.

The government-controlled mortgage giant announced Monday that it lost $13.1 billion applicable to common shareholders in the first quarter of 2010.

The request cames just four days after Fannie's twin Freddie Mac also asked for a handout - to the tune of $10.6 billion - after posting an $8 billion quarterly loss.

In using Fannie and Freddie to prop up the mortgage market, the government in December lifted a $200 billion limit on their bailouts, essentially giving the twin housing lenders a blank check. Fannie Mae has already received $76.2 billion from the federal government and Freddie has gotten $50.7 billion.

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Filed under: Fannie Mae
soundoff (28 Responses)
  1. Bobert

    Umm, how about "No"?

    May 10, 2010 09:03 am at 9:03 am |
  2. Fair is Fair

    Frank and Dodd... the legacy continues.

    May 10, 2010 09:10 am at 9:10 am |
  3. Lib Hunter

    Its Ok, Don't Worry! Although Fannie and Freddie were one of the main contributors to the financial collapse, they are major donors to Dems so the Dems like them. Whats another 8.4 billion between friends. And hell, why should Fannie and Freddie be punished for doing what Barney Frank and the Radical Dems wanted and lend money to people who they knew could not pay it back?
    DEMOCRATS= The Criminal Party

    May 10, 2010 09:11 am at 9:11 am |
  4. rightofrush

    Figures. There goes the economy again. They were a main cause this time around.

    May 10, 2010 09:21 am at 9:21 am |
  5. Eric

    It is clearly past time to shut down Fannie and Freddie.

    Their sole mission was to ensure funding was available to lend to people who could not otherwise afford to purchase a home, and little scenario is exactly what created the current financial mess we're in now.

    If you can't afford to purchase a home, for whatever reason, maybe renting is a better option for you. And when you can no longer afford your rent, the entire global market won't come crashing down.

    Home ownership is not a right. It is a luxury. And one in which you must first EARN. There is an old saying, "Give a man a free home and he'll break out the windows."

    May 10, 2010 09:24 am at 9:24 am |
  6. File under "Sarcasm"

    Freddie and Fanny are like spoiled children who know they can always come to daddy when they need more cash than they've got. A few billion here and a few billion there and all of a sudden you've spent some real money.

    May 10, 2010 09:26 am at 9:26 am |
  7. pa mom

    Freddie Mac and Fannie Mae have historically been an example of poor government ownership. This one can't be blames on Bush and please lte's not forget Obama and his buddies sitting on the Board.

    May 10, 2010 09:27 am at 9:27 am |
  8. Mark

    Tell them to get off our tax payers backs

    May 10, 2010 09:37 am at 9:37 am |
  9. NO MORE BAILOUTS!!!!

    Don't give Fannie Mae any more taxpayer money. Privatize Fannie Mae and make them compete for capital just like everyone else.

    May 10, 2010 09:46 am at 9:46 am |
  10. Dean

    It is about time Obama realizes that our economy isn't going to recover until we get our jobs back in this country, but we continue to ship jobs and factories overseas today.
    And also, the government does not do a good job of making money running a business. Proven by Freddie, Fannie, Post Office and soon to be health care.

    May 10, 2010 09:51 am at 9:51 am |
  11. aproudmemberoftheunpatrioticmob

    The other financial institutions (those not run by the government) are paying the money back, not asking for more. This is a shining recommendation for the path toward the extreme socialism Hussein Obama has put us on. Greece is his shining example.

    May 10, 2010 09:56 am at 9:56 am |
  12. jenn, philadelphia

    But let's not address this in the financial reform bill because then the Democrats might have to accept some of the blame for the bad economy.

    May 10, 2010 09:57 am at 9:57 am |
  13. Jane

    What!! No bailout let them fail..do not coddle companies that cannot run a business. The "bailout" flood gate has been opened and will always safety net companies that should be allowed to go under.

    May 10, 2010 10:04 am at 10:04 am |
  14. Michael Armstrong Sr.

    Fannie can kiss Americas Fannie .

    May 10, 2010 10:06 am at 10:06 am |
  15. Mark from Louisiana

    In 2009 Fannie Mae Chief Executive Officer Michael Williams and Freddie Mac CEO Charles Haldeman Jr. are each eligible for compensation of as much as $6 million this year, the companies said
    Thursday in regulatory filings.

    We are not only pouring our tax dollars into a bottomless hole, we are paying obamas cronies outrageous salaries at the same time.

    These companies are proof that it makes no sense to lend people money knowing they won't pay it back.

    May 10, 2010 10:09 am at 10:09 am |
  16. MAD 'MAX' TEXAN

    Let them go belly up like all the elderly and unemployed people they let go into bankrubtcy.

    May 10, 2010 10:10 am at 10:10 am |
  17. Michael

    Their execs should be making minimum wage until the companies are solvent again.

    May 10, 2010 10:11 am at 10:11 am |
  18. Eunice

    No more. Let them apply to a bank for a loan and get denied like everyone else.

    May 10, 2010 10:15 am at 10:15 am |
  19. Chessnutz of Liverpool NY

    We have already spent 145.9 Billion of bail outs for these failed Government agencies how long will we continue to waste our tax dollars on these failures?

    May 10, 2010 10:20 am at 10:20 am |
  20. Ron in California

    Will somebody please sstop the bleeding. Voters Fire Barney Frank in the next election...his policies caused and continue to cause this Fannie and Freddie problem

    May 10, 2010 10:20 am at 10:20 am |
  21. Frnk

    Freddie and Fanny should have their salaries cut to Federal pay scales.

    I know some lawyer friends of my wife that work there making hundreds of thousands a year, and their job is a joke.

    If they are owned by taxpayers, they should be paid like all federal employees.

    May 10, 2010 10:22 am at 10:22 am |
  22. Obozo's Record Deficit + Higher Taxes

    So much for GOVT run entiites. With idiots like Barney Frank and Chris Dodd in charge of this mess, no wonder we have record deficits.

    DUMocRATS at their financial best

    May 10, 2010 10:30 am at 10:30 am |
  23. Hugo

    Yeah right, and the root cause of our financial woes and economic problems is from those corrupt bankers on Wall Street....Yes, Virginia there is a Santa Clause, the check is in the mail, and no those are not herpes!

    REMEMBER IN NOVEMBER!

    May 10, 2010 10:33 am at 10:33 am |
  24. phoenix86

    The Obama administration will be one bailout after another, all at taxpayer expense.

    May 10, 2010 10:35 am at 10:35 am |
  25. j

    First knee-jerk reaction is to say – NO. However, this would have a real negative impact to the man on the street, not just Wall Street.

    May 10, 2010 10:41 am at 10:41 am |
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