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Fannie Mae Posts Record $29 Billion Quarterly Loss

Posted By admin On November 10, 2008 @ 11:59 am In Money Watch | Comments Disabled

Reuters [1]
Monday, Nov 10, 2008

Fannie Mae, the largest provider of funding for U.S. residential mortgages, on Monday said it lost a record $29 billion in the third quarter as the company wrote down a tax-related asset that has its buoyed capital.

The quarterly loss is the fifth consecutive for the Washington-based mortgage finance company that has been operating under a government conservatorship since September.

Fannie Mae in October warned it would write down “substantially all” of its deferred tax assets, which had become a controversial addition to capital as losses mounted.

Deferred tax assets can be used to offset future taxes, but only if the company can show it will return to profitability.

(Article continues below)

Fannie Mae Posts Record $29 Billion Quarterly Loss 161008pptv2 [2]

Credit expenses soared to $9.2 billion in the quarter due to deteriorating mortgage credit conditions and as home prices declined, the company said in a statement.

Fannie Mae’s loss equaled $13 per share, compared with a loss of $1.4 billion, or $1.56 per share a year earlier.


Full article here [1]

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URLs in this post:

[1] Reuters: http://www.cnbc.com/id/27642409

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Fannie Mae seeks new $8.4 billion US bailout to stay afloat: http://www.prisonplanet.com/fannie-mae-seeks-new-8-4-billion-us-bailout-to-stay-afloat.html

[4] U.S. Postal Service posts $1.9 billion loss, despite efficiency efforts: http://www.prisonplanet.com/u-s-postal-service-posts-1-9-billion-loss-despite-efficiency-efforts.html

[5] Ford Posts Loss of $8.7 Billion on Asset Woes: http://www.prisonplanet.com/ford-posts-loss-of-87-billion-on-asset-woes.html

[6] AIG Posts Loss Tied to Rescue, Reserves; Shares Fall: http://www.prisonplanet.com/aig-posts-loss-tied-to-rescue-reserves-shares-fall.html

[7] Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case: http://www.prisonplanet.com/fannie-freddie-fix-at-160-billion-with-1-trillion-worst-case.html

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