Fannie Mae expecting huge losses for the "indefinite future"

What is another $8.4 billion per quarter in perpetuity among friends? Freddie Mac just announced last week another $10.6 billion loss. Fannie and Freddie are government creations that helped cause the financial crisis.

Fannie Mae (FNM), the mortgage-finance company operating under federal conservatorship, said it will seek $8.4 billion in aid from the U.S. Treasury Department after reporting its 11th-straight quarterly loss. . . .
Given our expectations regarding future losses and draws from Treasury, we do not expect to earn profits in excess of our annual dividend obligation to Treasury for the indefinite future. . . .

Representative Paul E. Kanjorski (D - PA) says that they can't deal with Fannie and Freddie right now because it is "too complicated."



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