Fannie Mae and Freddie Mac ask for more money....

[dustup]

• Tweet

Freddie Mac Has Wider Loss, Seeks $6 Billion From Treasury

Nov. 3 (Bloomberg) -- Freddie Mac, one of two mortgage- finance companies under U.S. conservatorship, reported a $4.4 billion loss for the third quarter and said it will seek $6 billion from the U.S. Treasury Department.

The company, confronted with a weak housing market and losses on derivatives, will draw on its Treasury cash lifeline to eliminate a net-worth deficit of $6 billion for the three- month period ending Sept. 30, according to a Securities and Exchange Commission filing today.
http://news.businessweek.com/article.asp?documentKey=1376-LU33XX6K50XT01-4MG91POC9PRHEJTTKCGFIK1CFI
************************************************************************************************

Fannie Mae asks taxpayers for another bailout

Fannie Mae wants $7.8 billion from the federal government to cover loses. Fannie Mae has already received bailout money to the tune of $112.6 billion.

By Derek Kravitz, The Associated Press / November 10, 2011

House Capital Markets and Government Sponsored Enterprises subcommittee Chairman Rep. Scott Garrett, R-N.J., the subcommittee overseeing Fannie Mae and Freddie Mac, talks about his proposals to restructure the market for buying and selling mortgage loans, Thursday, Oct. 27, 2011, during a news conference on Capitol Hill in Washington.
http://www.csmonitor.com/Business/Latest-News-Wires/2011/1110/Fannie-Mae-asks-taxpayers-for-another-bailout

[lucy]

Why would we be on the hook for their derivatives losses? SEC needs to shut down derivatives, period. Too risky. And for some ungodly reason we are supposed to be liable?

[johnhp]

The SEC?  A government organization should intervene?  Heaven forbid.

[lucy]

You know of any other way to stop this mess? What other authority is there over these markets?

[johnhp]

You know of any other way to stop this mess? What other authority is there over these markets?

i have no problem with strict rules governing these organizations.  But then again, i am not a person who usually whines about government regulations.

[lucy]

Were you opposed to the dismantling of the Glass-Steagall Act, for example?

Abuse is abuse. Freedom can be abused. Regulation can also be abused. Depends on the desired outcome and who the players are.

[johnhp]

Were you opposed to the dismantling of the Glass-Steagall Act, for example?

Abuse is abuse. Freedom can be abused. Regulation can also be abused. Depends on the desired outcome and who the players are.

Look, i think you do not know how to approach these issues in a reasoned manner.  You have an ideology that you are trying to push that demands you take many positions on many things.  You despise government regulation when it comes to medicine yet when it comes to banking you find it amazingly helpful.

[ivanm]

Look, i think you do not know how to approach these issues in a reasoned manner.  You have an ideology that you are trying to push that demands you take many positions on many things.  You despise government regulation when it comes to medicine yet when it comes to banking you find it amazingly helpful.

Medicine and our monetary system are not comparable issues. 

How about less pontification and more suggestions? Or maybe all you can do is to criticize others for voicing an opinion.  Jerks like you make a forum a real drag at times.

[ivanm]

Fannie and Freddie buy home loans from banks and other lenders, package them with bonds with a guarantee against default and sell them to investors around the world. The companies nearly folded three years ago because of big losses on risky mortgages they purchased.

The Obama administration unveiled a plan earlier this year to slowly dissolve the two mortgage giants. The aim is to shrink the government's role in the mortgage system, remaking decades of federal policy aimed at getting Americans to buy homes. It would also probably make home loans more expensive.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

I think the good mortgages should be sold to private sector banks and I don't know what to do with the shaky ones. At any rate the government needs to get out of the mortgage business.

[johnhp]

Medicine and our monetary system are not comparable issues. 

Actually, they are.  Both industries require heavy regulation to protect consumers from the monsters running them.

How about less pontification and more suggestions? Or maybe all you can do is to criticize others for voicing an opinion.  Jerks like you make a forum a real drag at times.

i did offer a suggestion: heavy regulation.  The rest of you just bitch or, in your case, mutter incoherently in post form.

[johnhp]

Fannie and Freddie buy home loans from banks and other lenders, package them with bonds with a guarantee against default and sell them to investors around the world. The companies nearly folded three years ago because of big losses on risky mortgages they purchased.

The Obama administration unveiled a plan earlier this year to slowly dissolve the two mortgage giants. The aim is to shrink the government's role in the mortgage system, remaking decades of federal policy aimed at getting Americans to buy homes. It would also probably make home loans more expensive.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

I think the good mortgages should be sold to private sector banks and I don't know what to do with the shaky ones. At any rate the government needs to get out of the mortgage business.

You do know that Fannie and Freddie are not publicly owned don't you?

[dustup]

The Federal Home Loan Bank System threatens to gobble up even more tax dollars.
 
Like Fannie Mae and Freddie Mac before the government took them over last September, the Federal Home Loan Bank System, appropriately known as "flub," passes itself off as a fail-safe lending institution backed by the federal government.
http://www.forbes.com/2009/02/10/fhlb-fannie-freddie-opinions-contributors_0211_ronnie_phillips.html

[SufferedMoreThanJesus]

We haven't even begun to see the housing crash with all the moratoriums Obama has been continuing for the last two years.

There are over 5 Million homes that are holding on by their fingernails.

California will be bankrupt by March of 2012.  That won't look good on a President's resume for re-election.

Stick Obama with a fork.  He's done.