Fannie, Freddie post losses

WASHINGTON - Government-controlled mortgage buyer Fannie Mae has posted a narrower loss of $2.1 billion for the October-December quarter of last year, and asked for an additional $2.6 billion in federal aid.

The new request is slightly more than the $2.5 billion it sought in the July-September quarter. The mortgage buyer also reported a $21.7 billion loss for all of 2010.

The government rescued Fannie Mae and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans.


It estimates the bailouts will cost taxpayers as much as $259 billion.

Fannie Mae's October-December loss attributable to common stockholders works out to 37 cents a share. It takes into account $2.2 billion in dividend payments to the government. It compares with a loss of $16.3 billion, or $2.87 a share, in the fourth quarter of 2009.

Freddie Mac managed a narrower loss of $1.7 billion for the October-December quarter of last year. But it has asked for an additional $500 million in federal aid - up from the $100 million it sought in the previous quarter.

Freddie Mac also posted a $19.8 billion loss for all of 2010.

Freddie Mac's October-December loss attributable to common stockholders works out to 53 cents a share. It takes into account $1.6 billion in dividend payments to the government.

It compares with a loss of $7.8 billion, or $2.39 a share, in the fourth quarter of 2009.

Associated Press Feb. 25, 2011 12:00 AM




Fannie, Freddie post losses