Fannie Mae Wants $19 Billion Bailout
May 8, 2009 by Stephen Kersey
Filed under Business
Although some parts of the United States economy appears to be recovering, the housing crisis looks like its alive and kicking. Fannie Mae, which along with Freddie Mac has already received approximately $60 billion in federal government bailout funding, said on Friday that they need $19 billion more to stay afloat.
Fannie Mae and Freddie Mac were earlier taken over by federal regulators but continue to struggle. In the first quarter of 2009, Fannie Mae posted a loss of more than $23 billion. Freddie Mac’s numbers are expected to be released next week and those numbers are expected to also be ugly.
Without the bailout, Fannie Mae warned that the company wouldn’t be able to survive. Even with this latest bailout, Fannie Mae said that they won’t stop losing money anytime soon.
With job losses mounting and the economy still a long ways away from being fully repaired, some experts believe that the foreclosure rate could remain high for years to come.
Fannie Mae Headquarters (Image: FutureAtlas.com)
