Fannie posts $2.3 billion quarterly loss
Fannie Mae posted a $2.3 billion loss for the quarter as the mortgage and housing bust keeps chipping away at the liquidity of the mortgage giant. At this rate, I can’t imagine it being too much longer before the treasury pumps its first infusion of capital in to the company.
At least the company cut the dividend to a nickel for investors (from 35 cents). In my opinion as long as the government is explicitly guaranteeing the debt of this company, and using taxpayer funds to prop them up all dividends should be eliminated and corporate pay packages should be brought in line with other public officials. How pissed are you that your tax dollars are going to pad the salary of Fannie’s CEO?
From Market Watch:
Fannie Mae reported Friday a wider-than-expected loss for the second quarter and cut its dividend as the biggest U.S. buyer of home mortgages said the struggling housing market and credit expenses again hurt its performance, sending the company’s shares lower.
Fannie Mae lost $2.3 billion, or $2.54 a share, a reversal from the $1.9 billion, or $1.86 a share, earned in the year-ago second quarter.Daniel Mudd, Fannie’s chief executive, said that credit conditions are getting worse and that the company expects to have to resort to further increases in its loss reserves.
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Fannie posts $2.3 billion quarterly loss
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