Galileo Galilei
08-10-2010, 12:56 PM
Fannie-Freddie Bailout: $148B and Counting
Second-quarter results from Fannie Mae and Freddie Mac paint a dark picture for the firms' near-term profitability and for an eventual payback of taxpayer funds.
On Monday, Freddie Mac reported a net loss of $6 billion, or $1.85 per share. It continued to build loan-loss reserves even as big banks like Citigroup , Bank of America , JPMorgan Chase , Wells Fargo and U.S. Bancorp saw benefits from reducing the amount of cash held against bad debt. Credit losses climbed and its delinquency rate rose, mainly because of problem loans originated during the subprime bubble of 2005 to 2008.
Freddie Mac's conservator will request an additional $1.8 billion from the Treasury Department to keep its balance sheet in the black.
http://finance.yahoo.com/news/FannieFreddie-Bailout-148B-tsmf-20600764.html?x=0
In other words, more money from the poor and middle class funneled into the hands of the wealthy elite.
Second-quarter results from Fannie Mae and Freddie Mac paint a dark picture for the firms' near-term profitability and for an eventual payback of taxpayer funds.
On Monday, Freddie Mac reported a net loss of $6 billion, or $1.85 per share. It continued to build loan-loss reserves even as big banks like Citigroup , Bank of America , JPMorgan Chase , Wells Fargo and U.S. Bancorp saw benefits from reducing the amount of cash held against bad debt. Credit losses climbed and its delinquency rate rose, mainly because of problem loans originated during the subprime bubble of 2005 to 2008.
Freddie Mac's conservator will request an additional $1.8 billion from the Treasury Department to keep its balance sheet in the black.
http://finance.yahoo.com/news/FannieFreddie-Bailout-148B-tsmf-20600764.html?x=0
In other words, more money from the poor and middle class funneled into the hands of the wealthy elite.