Fannie Mae asks for another $5.1 billion in bailout cash

posted at 5:30 pm on August 5, 2011 by Ed Morrissey

Today brings more great news from the bailout.  Fannie Mae, which has already eaten over $100 billion of taxpayer money after being absorbed by the federal government in 2008, took a loss in the second quarter of $5.2 billion — and they want taxpayers to cover it:

Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.

Don’t expect this to be the last request, either:

It forecast continued weakness ahead, with high unemployment and foreclosures expected to put more downward pressure on home prices. …

Fannie Mae said its second-quarter loss “reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006.”

It said expenses related to mortgage modifications to keep struggling borrowers in their homes also contributed to its loss.

Expenses related to mortgage modifications?  Say, didn’t the Obama administration get a separate $75 billion to cover those expenses in HAMP?  And wasn’t it a year ago that we found out that HAMP had become a waste of time and (especially) money?

Congress and Obama have had more than two years to work on disconnecting taxpayers from Fannie Mae and Freddie Mac.  Even if one accepts the notion that seizing the two GSEs made sense as an emergency measure, we cannot keep covering their losses.  At some point in time, the investors have to take responsibility for their bad decisions.  Instead of passing ever-increasing regulation on industry that chokes off economic growth, perhaps the Obama administration and Congress should spend some time protecting taxpayers from the ongoing bleed-out at Fannie and Freddie.

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

I remember when $5 billion was a lot of money.

Mark1971 on August 5, 2011 at 5:33 PM

perhaps the Obama administration and Congress should spend some time protecting taxpayers from the ongoing bleed-out at Fannie and Freddie.

Oh, heavens! And let the Dem’s slush fund dry up?

cthulhu on August 5, 2011 at 5:33 PM

Barney Frank and Chris Dodd. May their names forever be associated with this criminal operation.

rob verdi on August 5, 2011 at 5:33 PM

Shut it down. SHUT IT ALL DOWN.

portlandon on August 5, 2011 at 5:34 PM

America to Fanny Mae: “Blow **”

E L Frederick (Sniper One) on August 5, 2011 at 5:34 PM

NO!!!

ConservativePartyNow on August 5, 2011 at 5:35 PM

Un.

Effing.

Believeable.

catmman on August 5, 2011 at 5:35 PM

PRIVATIZE IT

A consortium of private companies can take it over, resolve the weak assets cancer within the portfolio of properties and in a couple of years stabilize the housing market.

Opposite Day on August 5, 2011 at 5:36 PM

Who here is really surprised?

Hey, here’s a little something if you need a laugh.

http://www.youtube.com/watch?v=W4hfdaC7eL4&feature=share

JellyToast on August 5, 2011 at 5:37 PM

Lock the doors, throw away the keys, fire them all and…

….Shut ‘er down

Knucklehead on August 5, 2011 at 5:37 PM

And the USPS is running $3.1B deficit.

We are going to need more $1T platinum coins.

WashJeff on August 5, 2011 at 5:38 PM

NO NO NO NO NO NO NO NO NO

gophergirl on August 5, 2011 at 5:40 PM

I’m applying a comment to where it does not belong; just a statement of fact: It is against the law to ask your age on a job application. At the same time, they are allowed to inquire for you to provide the year that you graduated from high-school/college. What’s the dif? I guess, this also, took the brains of Congress to enact.

betsyz on August 5, 2011 at 5:42 PM

Are they high?

carbon_footprint on August 5, 2011 at 5:42 PM

Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

Response to FNMA: Too bad. Take the loss. You loaned it, now deal with it. So much for the bonuses this year at FNMA.

BobMbx on August 5, 2011 at 5:44 PM

and they want taxpayers to cover it”

No problem. How much do you need?
-$5.1 billion.
Ah…yeah. Here’s the thing….

Electrongod on August 5, 2011 at 5:44 PM

HELL NO!!!!!!!!!!!!!!!

CatoRenasci on August 5, 2011 at 5:44 PM

JellyToast on August 5, 2011 at 5:37 PM

Hysterical. Laughing so hard my sides hurt. Thanks!

milwife88 on August 5, 2011 at 5:47 PM

Fannie Mae asks for another $5.1 billion in bailout cash

We do not need an entity which refuses to correct its mistakes!!!

SHUT IT DOWN!!!!

landlines on August 5, 2011 at 5:48 PM

$5.1 billion

Are they short on bonuses or something?

Electrongod on August 5, 2011 at 5:48 PM

So much for the bonuses this year at FNMA.

BobMbx on August 5, 2011 at 5:44 PM

Ooops.
I should have reviewed previous posts before mine.
Sorry.

Electrongod on August 5, 2011 at 5:49 PM

Cut them off.

Fanny. Freddie. Ginnie. Sallie. All these quasi-government organizations, cut them off from the federal teat.

Give each taxpayer a share in them and let the PEOPLE figure out what to do with these things. Government can’t do it, but the wisdom of the PEOPLE will take care of them in short order.

One share per taxpayer and not one red cent more from our government.

ajacksonian on August 5, 2011 at 5:50 PM

How come when private companies get bailouts, little Bammie fires the CEOs, demands an end to any bonuses, send out his goons like the greedy SEIU to protest on the executives front lawn, al New York Times publishes their home addresses and salaries, and they are threatened with pitchforks?

When it’s F&F on the other hand, it’s all good.

slickwillie2001 on August 5, 2011 at 5:51 PM

What’s the dif? I guess, this also, took the brains of Congress to enact.

betsyz on August 5, 2011 at 5:42 PM

well, considering PC is only a facade, and everybody knows it’s just about form and not about substance, what do you expect…reason why there are so many paradoxes and contradictions plaguing the PC ‘doctrine’ in general…of course you can pretty much infer someone’s age by the year they graduated from different education institutions….

jimver on August 5, 2011 at 5:51 PM

Can’t we just hire Lew Ranieri and put him in charge of shutting down these two parasites.

It shows how totally FUBAR our government is that they still exist at all, 3 years after they led America’s economy over the cliff.

rockmom on August 5, 2011 at 5:52 PM

They should go to Hell, with the ones at the helm, et the entire carnival of them.

Schadenfreude on August 5, 2011 at 5:53 PM

Irresponsibility is rewarded.

Become a looter. It’s the best of all lives.

The moochers will never inherit the world, but the looters will fool them.

Schadenfreude on August 5, 2011 at 5:54 PM

How doubly appropriate you should illustrate the article with a photo of Mark Lester, who squandered his “Oliver” fortune by throwing it around with drunken, reckless abandon (mostly in the company of Oliver Reed, heh).

Sharke on August 5, 2011 at 5:55 PM

surreal…

jimver on August 5, 2011 at 5:56 PM

Put Fannie and Freddie out of their misery. Shut ‘em down and prosecute the corruptocrats.

Christian Conservative on August 5, 2011 at 6:02 PM

They will get it… This is all part of the plan to redistribute the wealth in this country. None of this is happening by accident. America is under attack. Any God loving and fearing POTUS would have stopped by now. Obama is totally indifferent to the pain of the unemployed American. He is detached from all the horror his policies have created. Whoever is the real president behind the curtain hates America so much that he/they are trying to destroy her. Meanwhile we here understand what is happening but most of those we know haven’t a clue of what is coming if we don’t oust these people next election.

CCRWM on August 5, 2011 at 6:05 PM

On the bright side, that’s 5 billion LESS of taxpayer money that Obama has available to spend on his re-election.

Mahdi on August 5, 2011 at 6:06 PM

Put Fannie and Freddie out of their misery. Shut ‘em down and prosecute the corruptocrats.

Christian Conservative on August 5, 2011 at 6:02 PM

like the whole Dem establishment, and going back to Clinton era…

jimver on August 5, 2011 at 6:11 PM

I can’t even imagine what havoc Obama will wreak on this
country in the next year and a half.

Anyone who defends this man is an idiot; anyone who
defends our members of congress who are complicit in the
raping and pillaging of our country need to be tried for
treason (okay, treason may be a little harsh – I just want them in jail!).

Amjean on August 5, 2011 at 6:11 PM

Absolutely not!!! I will strongly ping my one sane Senator, and my Congressman to oppose any money for Fannie or Freddie!.

GFW on August 5, 2011 at 6:20 PM

How else do you expect Ojesus to buy all of his supporters those wide-screen TVs and pay their rent?

Remember this gem?

“We’ve got Obama now!”

hillbillyjim on August 5, 2011 at 6:21 PM

It was Barney Frank who insisted that Freddie and Fanny wasn’t a probum?

The pending disaster was exasperated by his denial and obfuscation when others tried to call attention to the mismanagement. Later is was revealed the depths of the number juggling and fraud designed to secure FAT bonuses for Franklin Raines, Jamie Gorelick and a host of other cockroaches.

Bastids all of them.

Geochelone on August 5, 2011 at 6:27 PM

Ask Harold Raines to cover it.

ctmom on August 5, 2011 at 6:28 PM

Maxine Waters: “We do not have a crisis at Freddie Mac and particularly Fannie Mae under the outstanding leadership of Frank Raines

Yeah Maxine, nice call you jackball. Outstanding leadership? More like an outstanding Heist.

If he was charged with guarding the Louvre the only thing left intact would be some tourist trinkets in the gift shop.

Geochelone on August 5, 2011 at 6:34 PM

Get the money from the bonus thieves – Raines & Gorelick – and their enablers: Frank, Dodd and Obama.

Basilsbest on August 5, 2011 at 6:39 PM

I guess we all get to go down together.

hawkdriver on August 5, 2011 at 6:42 PM

No absolutely not one more penny should go to Fannie. For that matter shut down all financial aid to foriegn countries too!

sonnyspats1 on August 5, 2011 at 6:44 PM

DO NOT give these slugs, worms, snakes one more penny, Period! NO more money ever.
L

letget on August 5, 2011 at 6:44 PM

My wife and I ate our home and it is our fault. We overbought in a high market. Fannie was right there to sign off of it. She was a hooker and I was buying. Just that simple. Defund this female dog.

Limerick on August 5, 2011 at 6:55 PM

No! No! And Hell No!

RebeccaH on August 5, 2011 at 6:59 PM

I confess my mistake. Fannie still walks the alley.

Limerick on August 5, 2011 at 7:03 PM

Maybe Maxine Waters can get Franklin Raines to come out of retirement. After all, Frankie did “an outstanding job” while he was cooking the books running the show there.

Better yet, why not strip Frankie of his $6 million bonus?

GarandFan on August 5, 2011 at 7:07 PM

Something tells me, all this money they’ve gotten, goes right back into Dem coffers.

capejasmine on August 5, 2011 at 7:08 PM

I have LONG believed that the foreclosed homes will become part of the largest Section 8 programs we have ever seen.
Welcome to the neighborhood
Shut ‘em down!
Prosecute the bejabbers out of Frank and anyone else and cronies associated with this debacle!

MITX on August 5, 2011 at 7:11 PM

Dissolve Fannie Mae.

crosspatch on August 5, 2011 at 7:35 PM

No one has the guts to end the slush fund, and that’s just one reason why we have been downgraded to third world economy by just the first rating agency.

PattyJ on August 5, 2011 at 10:05 PM

What’s the downside of leaving Fannie Mae floating in the wind?

{^_^}

herself on August 6, 2011 at 4:33 AM

Lock the doors, throw away the keys, fire them all and…

….Shut ‘er down

I agree. When in a hole stop digging!

gdonovan on August 6, 2011 at 7:36 AM

Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

NO !!! !!!!!! !

tx2654 on August 6, 2011 at 8:59 AM