Fannie Mae Seeks Another Government Bailout

Fannie Mae is asking for another $8.4 billion from the government to cover losses on bad mortgages after reporting a dismal first-quarter loss of $13 billion.
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Fannie Mae is asking for another $8.4 billion from the government to cover losses on bad mortgages after reporting a dismal first-quarter loss of $13 billion.

If fulfilled, the new request will bring Fannie’s total bailout package to $83.6 billion, nearly double the size of what the Treasury injected into Citigroup and Bank of America from the TARP program in Sept. 2008.

Late last year, the Obama administration increased its pledge to cover losses at Fannie and Freddie Mac past 2012 and did away with a $400 billion cap on aid.

The legislation "touches nearly every corner of the economy," Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address over the weekend. "But these major contributors to the crisis are left unscathed," he added, singling out Fannie Mae and Freddie Mac.

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