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Freddie/Fannie Wants $6.6B More From Us

From a seemingly unfazed Reuters:

Freddie Mac seeks $1.5 billion from taxpayers

By Mark Felsenthal – Mon Aug 8, 2011

WASHINGTON (Reuters) – Mortgage finance giant Freddie Mac FMCC.OB said on Monday it would need to ask for an additional $1.5 billion from taxpayers due to losses stemming from weak housing markets.

The company reported a comprehensive loss in the second quarter of $1.1 billion. Despite income of $1 billion, the company registered a net worth deficit of $1.5 billion

Freddie Mac has drawn $65.2 billion from the government since it was taken over at the height of the financial crisis in September of 2008

They sound like a typical government success story to us.

Freddie Mac said it expects home prices to decline in the near term, and that it expects its credit losses to remain elevated in the second half of the year.

Labor market weakness and households’ worries about their financial security dampened home sales during the quarter, Freddie Mac chief executive Charles Haldeman said…

Perhaps doing away with the mortgage deduction will help.

Fellow mortgage finance provider Fannie Mae FNMA.OB said last week it will ask for an additional $5.1 billion from taxpayers. It reported a second quarter loss attributable to common shareholders of $5.2 billion or 90 cents a share.

This must be some news that was put out on a late Friday evening, since it is the first we are hearing about it.

The government seized control of both firms almost three years ago as losses piled up from mortgages gone bad…

And we can see how much better things are going since the government has taken over. (Not that there was ever a time when the government wasn’t really in control of them.)

Ratings agency Standard & Poor’s on Monday downgraded the debt issued by the firms to AA+ from AAA, the highest level, following their weakening of the U.S. government’s credit rating last week.

You really have to wonder what took them so long?

But the credit rating downgrades to Freddie and Fannie are going to make these already terrible numbers that much worse.

This article was posted by Steve on Tuesday, August 9th, 2011. Comments are currently closed.

10 Responses to “Freddie/Fannie Wants $6.6B More From Us”

  1. GetBackJack says:

    So, the lesson here is that if you want to be able to demand money from other people, politics is the business to be in.

    I’m certain criminals all over America are getting that message loud and clear.

    • Right of the People says:


      Lesson from PoliSci I, politics = criminal. Once you get your head around that concept, the rest is easy.

    • GetBackJack says:

      Godfather III – old Sicilian counseling Michael Coreolne – MICHAEL (in Italian)

      “Politics and crime. They’re the same thing…”

  2. Reality Bytes says:

    Sell them to HSBC* & cut our losses.

    *Hong Kong and Shanghai Banking Corporation LTD

  3. Papa Louie says:

    Back in 2008, when Sarah Palin said Fannie and Freddie had “gotten too big and too expensive to the taxpayers,” Sam Stein at Huffpo referred to her statement as Palin’s first “major gaffe.” All the liberal rags linked to his article and ridiculed Palin’s complete lack of understanding about economics. But who are the economic idiots now? And when will they publish the apology they owe her?

  4. TerryAnne says:

    “Freddie/Fannie Wants $6.6B More From Us”

    Add one more 6 to that and we can call it a deal.

    • proreason says:

      sphincter muscles.

      They wear out.

    • TerryAnne says:

      Darn you, tn. ;) I was coming here to post this. LOL!

      It was all over Glenn Beck yesterday. I gave up trying to figure out what was funnier, his clip of it (where he can’t stop laughing) or the comments that people put on his Facebook page in response. I think my favorite was something like, “Where’s Al Gore? Shouldn’t he be punishing him for polluting the atmosphere with methane?” Another funny sentiment (that was repeated by a lot) was along the lines of, “Sounds no different than what comes out of his mouth” or “I can understand that better than half the s*it he says”. I spent a good two hours laughing my behind off!

    • tranquil.night says:

      “I can understand that better than half the s*it he says.”

      Lmao! Exactly, we’re always used to the HotAir coming out of his mouth.

      Thank you Bahney. You and your colleague Anthony Weiner have gone far to ensure that watching Barackalypse Now comes with a much needed and appropriate serving of Dick and Fart jokes

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