Fannie Loses $29 Billion
Fannie Mae, now controlled by the government, reported a $29 billion third-quarter loss thanks to a tax-related charge and rising expenses owed to the dismal housing market. The company had warned earlier that it wouldn't see a profit anytime soon and many of its assets now have little to no value.
More troubling, the mortgage giant said homeowner defaults are continuing to rise.
Fannie warned that if it has another bad quarter, it may need some of the $100 billion in federal aid promised by the government in September, when the government seized Fannie and cousin Freddie Mac.
The two own or guarantee nearly half of all U.S. mortgages.
-- Frank Ahrens
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