Leave a Comment

Fannie Mae to Paulson: Please sir, may I have some more?
FT Alphaville — This is getting ridiculous. On top of a record $29bn quarterly loss (and the tacit admission that it will continue to report losses for the forseeable future), and buried on page 218 is this little gem in Fannie Mae’s  10-Q filing with the SEC : Treasury’s funding commitment may not be sufficient to keep us in a solvent condition Say what? This is what: Under the senior preferred stock purchase agreement, Treasury has made a commitment to provide up to $100 billion in funding as needed to help us maintain a positive net worth. To the extent we draw under the funding commitment ...

Fannie: $100 Billion May Not be Enough
Calculated Risk — ... Here is the Fannie 10-Q filed with the SEC. This statement is under "Risks Relating to Our Business" and is not a prediction from Fannie, just a statement of a possible risk. The huge loss reported today was mostly because of a reduction in deferred tax assets. ...

Fannie Mae May Need More Than $100 Billion From U.S.
DealBook — ... the credit markets to finance purchases for its $761 billion mortgage portfolio and pay off debt as it matures. The company has more than $138.6 billion in short-term debt maturing over the next two months, according the S.E.C. filing. The cost of using derivatives to manage the interest-rate risks has also increased, Fannie Mae said. Both Fannie Mae and Freddie Mac were seized by regulators in early September. Freddie Mac is expected to report its financial results later this week. Go to S.E.C. Filing from Fannie Mae » ...