Fannie Mae Asks for an Additional $8.4B in Government Aid After First-Quarter Loss

Housing giant mortgage provider Fannie Mae (FNM) reported this morning that it lost $11.5 billion in the January-March period, compared with a net loss of $15.2 billion in the fourth quarter of 2009. Including $1.5 billion of dividends on its senior preferred stock held by the U.S. Department of Treasury, the net loss was $13.1 billion, or ($2.29) per diluted share. With a Net revenue of $3.0 billion in the first quarter of 2010, down 48% from $5.8 billion in the fourth quarter of 2009, and a loan-loss reserve from $64 billion to $61 billion (-$3B) three months ago, the co. said it is uncertain about the long term financial sustainability and asked for an additional $8.4 billion in government aid.

“Due to current trends in the housing and financial markets, we continue to expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement,” the company said in its release.

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