Fannie Mae: Brother Can You Spare $4.6 Billion?

By Doug Powers  •  February 29, 2012 01:58 PM

**Written by Doug Powers

“These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis.” … “I want to roll the dice a little bit more in this situation towards subsidized housing.” — Rep. Barney Frank, 2003

Maybe it’s a good thing Wall Street Reform and Consumer Protection Act didn’t lay a glove on Fannie Mae, because if Dodd-Frank had tried to “fix” it, Fannie would probably be back asking for even more money than they already are:

Fannie Mae will request another $4.6 billion in US government aid after posting a $2.41 billion loss in the fourth quarter, the mortgage finance company said Wednesday.

The company also warned it could be required to request additional aid stemming from an escalating battle with Bank of America over mortgage-repurchase requests.

Fannie Mae blamed its quarterly loss primarily on pre-2009 loans and declines in home prices, which pushed up the company’s credit-related expenses.
[...]
Including its most recent request from the US Treasury Department, Fannie Mae has borrowed more than $116 billion from taxpayers and paid back $19.6 billion in dividends. The net cost to taxpayers for the bailouts of both companies stands at more than $152 billion.

The loss is reported from the same quarter that the Federal Housing Finance Agency approved $6.3 million in bonuses for Fannie’s top five officers.

In other economic news, prepare for possible stimulus from the Fed (h/t Michelle via Twitter):

Bernanke said the job market is still “far from normal” and may require the Fed to launch more stimulus measures, in his semi-annual monetary policy report to Congress.

Bernanke also added rising gasoline prices will likely push up inflation temporarily, while reducing consumers’ purchasing power.

That is until the algae-mobiles go on sale, then happy days will be here again!

**Written by Doug Powers

Twitter @ThePowersThatBe

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Posted in: Subprime crisis

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Comments


  1. #1
    On February 29th, 2012 at 2:01 pm, mondamay said:

    Bernanke said the job market is still “far from normal” and may require the Fed to launch more stimulus measures, in his semi-annual monetary policy report to Congress.

    Next stop: Quantitative Sleazing pt. III!

  2. #2
    On February 29th, 2012 at 2:09 pm, Rogue Cheddar said:

    “I want to roll the dice a little bit more in this situation towards subsidized housing.” — Rep. Barney Frank, 2003

    That’s called ‘shooting craps’ Barney, and you got it all over us!

  3. #3
    On February 29th, 2012 at 2:12 pm, Rogue Cheddar said:

    In other economic news, prepare for possible stimulus from the Fed

    Bernanke (singing):
    I’ve been on tenterhooks
    ending in dirty looks,
    list’ning to the Muzak,
    thinking ’bout this ‘n’ that.
    She said that’s that.
    I don’t wanna chitter-chat.
    Turn it down a little bit
    or turn it down flat.
    Pump it up when you don’t really need it.
    Pump it up until you can feel it.

    Down in the pleasure centre,
    hell bent or heaven sent,
    listen to the propaganda,
    listen to the latest slander.
    There’s nothing underhand
    that she wouldn’t understand.

    Pump it up until you can feel it.
    Pump it up when you don’t really need it.

    She’s been a bad girl.
    She’s like a chemical.
    Though you try to stop it,
    she’s like a narcotic.
    You wanna torture her.
    You wanna talk to her.
    All the things you bought for her,
    putting up your temp’rature.

    Pump it up until you can feel it.
    Pump it up when you don’t really need it.

    Out in the fashion show,
    down in the bargain bin,
    you put your passion out
    under the pressure pin.
    Fall into submission,
    hit-and-run transmission.
    No use wishing now for any other sin.

    Pump it up until you can feel it.
    Pump it up when you don’t really need it.

  4. #4
    On February 29th, 2012 at 2:14 pm, letget said:

    Well gosh people, we gotta bail out fan and fred because those funds should go there not to our militay health care! dc does have priorities now as to what is important? They will need more taxpayers funds so we can get those who are being charged with various crimes to get their lawyers paid also.
    L

  5. #5
    On February 29th, 2012 at 2:18 pm, Truesoldier said:

    Sounds to me like Obama needs more campaign cash….

  6. #6
    On February 29th, 2012 at 2:21 pm, stillontheroad said:

    Ì don’t know much about economics’, that’s why I got this song
    One of my legs is shorter than the other and both my feet’s too long
    ‘Course now right along with ‘em, I got no natural rhythm
    But I go dancin’ every night, hopin’ one day I might get it right
    I’m a dancin’ fool (Dancin’ fool)
    I’m a dancin’ fool
    I’m a dancin’ fool (Dancin’ fool)
    I’m a dancin’ fool
    I hear that beat, I jump outa my seat , scream Quantitative Easing
    But I can’t compete ’cause I’m a dancin’ fool (Dancin’ fool)
    I’m a dancin’ fool

  7. #7
    On February 29th, 2012 at 2:30 pm, RedDog said:

    I thought this crap was being investigated? Oh, sorry. I was dreaming again. All I can say is that these nightmare rackets had better be shut down come this time next year.

    Dodd, Frank et al still need to be prosecuted. This is not going away by a long shot.

  8. #8
    On February 29th, 2012 at 2:30 pm, Paratus said:

    Keep thinking Fannie Mae and Freddie Mac sound like a pimp and one of his, uhhh ladies of the evening.

  9. #9
    On February 29th, 2012 at 2:34 pm, RedDog said:

    On February 29th, 2012 at 2:01 pm, mondamay said:

    Bernanke said the job market is still “far from normal” and may require the Fed to launch more stimulus measures, in his semi-annual monetary policy report to Congress.

    Next stop: Quantitative Sleazing pt. III!

    Enough is enough. We need to have a ceremonial execution for Keynesian economic theory. Americans need real closure to that freaking nuthouse fantasy. All designed around fake fiat money.

  10. #10
    On February 29th, 2012 at 2:35 pm, Flyoverman said:

    When in the h@il are they going to forbid Fannie and Freddie to accept anymore subprime loans?

    The flow of sewage out of there has GROWN since the housing market collapsed. NOTHING has changed in either of them.

  11. #11
    On February 29th, 2012 at 2:36 pm, RedDog said:

    On February 29th, 2012 at 2:09 pm, Rogue Cheddar said:
    … That’s called ‘shooting craps’ Barney, and you got it all over us!

    Dang Rogue. The visual is way too much. Not enough condoms and bleach in the world…….

  12. #12
    On February 29th, 2012 at 2:37 pm, granite said:

    Bernanke also added rising gasoline prices will likely push up inflation temporarily, while reducing consumers’ purchasing power.

    No $h!*, Sherlock?!

    This guy is just so G.D. brilliant!

  13. #13
    On February 29th, 2012 at 2:44 pm, happyscrapper said:

    On February 29th, 2012 at 2:18 pm, Truesoldier said:
    Sounds to me like Obama needs more campaign cash….

    Man, have you got that right!! This is exactly where our money is going! This just gets better and better!

    Lock and load, folks. This is accelerating by the day.

    On February 29th, 2012 at 2:35 pm, Flyoverman said:
    When in the h@il are they going to forbid Fannie and Freddie to accept anymore subprime loans?

    My question would be, Where in the h@il are they going to get the money???

  14. #14
    On February 29th, 2012 at 2:45 pm, RedDog said:

    Bernanke also added rising gasoline prices will likely push up inflation temporarily…

    No, if it gets high enough it’s likely to cause another round of foreclosures and run us into a depression. Another Princeton genius pontificating.

  15. #15
    On February 29th, 2012 at 2:46 pm, happyscrapper said:

    On February 29th, 2012 at 2:37 pm, granite said:
    Bernanke also added rising gasoline prices will likely push up inflation temporarily, while reducing consumers’ purchasing power.
    No $h!*, Sherlock?!

    This guy is just so G.D. brilliant!

    You could say the exact same thing about every schmuck in DC right now, especially the POTUS.

  16. #16
    On February 29th, 2012 at 3:01 pm, Hangfire said:

    Not a farthing!

    Get rid of Freddie and Fanny immediately.

    HUD, too.

  17. #17
    On February 29th, 2012 at 3:04 pm, ITookTheRedPill said:

    On February 29th, 2012 at 2:35 pm, Flyoverman said:

    When in the h@il are they going to forbid Fannie and Freddie to accept anymore subprime loans?

    The flow of sewage out of there has GROWN since the housing market collapsed. NOTHING has changed in either of them.

    THIS!!!

    They have never fixed the root of the problem!

  18. #18
    On February 29th, 2012 at 3:18 pm, AlohaGuy said:

    The net cost to taxpayers for the bailouts of both companies stands at more than $152 billion.

    I was worried it might be a lot of money, thankfully no.

    I can never remember, was Frank’s boyfriend the head of Fannie or Freddie? So Frank’s household prospers off the taxpayer’s dime billions while he is supposed to be the Congressional watchdog. It’s sleazier than the brothel his other boyfriend ran in his basement. Thankfully Massachusetts voters saw the problem.. oh wait, no, they like sleazebags representing them in Congress. Unfreaking believable.

  19. #19
    On February 29th, 2012 at 3:24 pm, ITookTheRedPill said:

    And let us not forget the truth about the Fannie/Freddie housing crisis of 2008.

    It was 2 Democrat Presidents (Carter and Clinton) who passed, then expanded, the Community Reinvestment Act.

    During the Bush administration, Republicans tried to rein in Fannie/Freddie, but Democrats vehemently opposed these efforts at reform, and accused the Republicans of racism. (Shocker!)

    It is Democrats who are mostly responsible for the problems at Fannie/Freddie, and the damage to our economy that has resulted.

  20. #20
    On February 29th, 2012 at 3:29 pm, granite said:

    On February 29th, 2012 at 3:18 pm, AlohaGuy said:

    I can never remember, was Frank’s boyfriend the head of Fannie or Freddie?

    Now that sentence would appear to be, if I’m using the term correctly, a “target-rich environment” for a punster….

  21. #21
    On February 29th, 2012 at 3:30 pm, Republicanvet said:

    On February 29, 2012 at 12:09 pm, Rogue Cheddar said:

    “I want to roll the dice a little bit more in this situation towards subsidized housing.” — Rep. Barney Frank, 2003

    That’s called ‘shooting craps’ Barney, and you got it all over us!

    …any truth to the rumor Fannie Mae will be changing their name to Fannie Will in honor of Barney the Frank?

  22. #22
    On February 29th, 2012 at 3:32 pm, Rogue Cheddar said:

    My question would be, Where in the h@il are they going to get the money???

    Maybe here?

    Special operations forces to do more with less

  23. #23
    On February 29th, 2012 at 3:32 pm, granite said:

    On February 29th, 2012 at 3:30 pm, Republicanvet said:

    !!!My point in #20!!!

    Good one!

    :)

  24. #24
    On February 29th, 2012 at 3:40 pm, Republicanvet said:

    On February 29, 2012 at 01:18 pm, AlohaGuy said:

    I can never remember, was Frank’s boyfriend the head of Fannie or Freddie?

    Given Franks proclivities, it was likely Freddies head.

  25. #25
    On February 29th, 2012 at 3:53 pm, letget said:

    It seems that the dc bunch can not utter a word of a ‘hunderd, thousand, or million anymore. NO it is billions or trillions they want to sock-it-to-us! They take and take and ask for more to bail out their getting rich off US the taxpayers, and money from china. And the horrible sad fact almost everyone in dc is doing the same to keep the mess going? Something has got to change and I mean soon or my beloved Republic is sol! I will do all I can to try and change it, but so far those we have to choose from are about as bad?
    L

  26. #26
    On February 29th, 2012 at 3:54 pm, granite said:

    On February 29th, 2012 at 3:40 pm, Republicanvet said:

    And another one!!

  27. #27
    On February 29th, 2012 at 4:00 pm, Flyoverman said:

    In the Property and Casualty Insurance world, when a company’s claims experience gets real bad, the state regulators come in and forbid you from writing any more new business, because it is assumed you are insuring bad insureds.

    A bank that issued lots of bad loans would get a similar visit.

    So why not Fannie and Freddie…… Democrats.

  28. #28
    On February 29th, 2012 at 4:05 pm, hawkeye54 said:

    They take and take and ask for more to bail out their getting rich off US the taxpayers, and money from china. And the horrible sad fact almost everyone in dc is doing the same to keep the mess going?

    They’ll keep going until we have an economic 9/11 that ultimately ruins all of us financially. The goal is making the general public completely dependent upon on our government.

    The elites hate people who are financially independent, ’cause they generally don’t heed the demands of nor need their “betters”.

  29. #29
    On February 29th, 2012 at 4:15 pm, RedDog said:

    On February 29th, 2012 at 3:24 pm, ITookTheRedPill said:
    …. It is Democrats who are mostly responsible for the problems at Fannie/Freddie, and the damage to our economy that has resulted.

    I have been screaming this for years. A full and complete financial post-mortem needs to be done on this whole affair, and then there must be criminal prosecutions to follow. They not only wrecked the American economy, their racket brought down the world financial markets as well. And they still enjoy the full faith, confidence and support of the Quisling Media and the entitlement class. This is a real life horror film.

    This cannot be allowed to pass. No way.

  30. #30
    On February 29th, 2012 at 4:19 pm, RedDog said:

    On February 29th, 2012 at 4:00 pm, Flyoverman said:
    … So why not Fannie and Freddie…… Democrats.

    Come on Fly. You know the rules of accounting, finance and economics no longer apply in this brave new world. Something tells me the laws of physics still do.

  31. #31
    On February 29th, 2012 at 4:22 pm, FirstSkirt said:

    This is in keeping with Obeyme’s agenda: to bring the United States to its knees. Bernake is just another dope in wheel. All of these unsecured housing loans started a long time ago, accelerated under Clinton, and imploded under Obama (he loves looking like he champions regular joes when he is directly involved in bankrupting homeowners into foreclosure). Fannie and Freddie were created by bankers and their ilk solely for their own benefit…they don’t even think the money “government” gives them is taxpayer money. They.all.have.to.go.

  32. #32
    On February 29th, 2012 at 4:26 pm, hawkeye54 said:

    This cannot be allowed to pass. No way.

    Oh it will.

    When in the h@il are they going to forbid Fannie and Freddie to accept anymore subprime loans?

    Just about the time its decided to shut down Fannie and Freddie’s illicit operation altogether.

  33. #33
    On February 29th, 2012 at 4:44 pm, Flyoverman said:

    On February 29th, 2012 at 4:19 pm, RedDog said:

    Something tells me the laws of physics still do.

    GRAVITY…. it isn’t just a good idea. it’s the law!

  34. #34
    On February 29th, 2012 at 5:10 pm, Yashmak said:

    Today on MSNBC, they’re reporting that the Fed is saying that recent improvements in the economy have much reduced the likelihood of additional Quantitative Easing.

    That’s good. . .if it turns out to be true.

  35. #35
    On February 29th, 2012 at 7:41 pm, Papa Louie said:

    Fannie Mae will request another $4.6 billion in US government aid after posting a $2.41 billion loss…

    You lie! Otherwise this means that Sarah Palin was right and the Huffington Post was wrong. Inconceivable!
    /sarc off

    Seriously though, when Sarah said Fannie Mae and Freddie Mac had “gotten too big and too expensive to the taxpayers”, the Huffington Post came out with the following article making fun of her:

    Palin Makes Her First Gaffe

    It’s a fun read because it shows how the left lies to criticize and make fun of the right. They assume no one will fact check them down the road.

  36. #36
    On February 29th, 2012 at 10:22 pm, WaterBoyz said:

    On February 29, 2012 at 03:24 PM, ITookTheRedPill said:
    And let us not forget the truth about the Fannie/Freddie housing crisis of 2008.

    It was 2 Democrat Presidents (Carter and Clinton) who passed, then expanded, the Community Reinvestment Act.

    During the Bush administration, Republicans tried to rein in Fannie/Freddie, but Democrats vehemently opposed these efforts at reform, and accused the Republicans of racism. (Shocker!)

    It is Democrats who are mostly responsible for the problems at Fannie/Freddie, and the damage to our economy that has resulted.

    This is probably one of the best kept secrets about what was the root cause.

    If it wasn’t for MM and DP and us here, nobody would ever know let alone the constant attempts to get some traction that goes nowhere.

    Wonder if the R candidate will even bring it up?

  37. #37
    On February 29th, 2012 at 11:09 pm, Straight_Talk_Luigi said:

    Why aren’t the Obama supporters on here defending the bailouts?

  38. #38
    On March 1st, 2012 at 9:36 am, Teddy Kennedy said:

    Errah, I heard they need the additional funding cuz Bawney Fwank left town with a concealed roll of twenties on his person. Can you say Papillion??!!

  39. #39
    On March 1st, 2012 at 10:04 am, Rogue Cheddar said:

    Judge in Dream: I accuse YOU… of a WASTED LIFE!
    Papillon: Guilty… guilty… guilty…

  40. #40
    On March 1st, 2012 at 2:30 pm, FirstSkirt said:

    Taken from an article that appeared in Right Side News.com website in 2009, regarding Bwaney and the Boys in Company C:

    (quote)…Yet even when faced with the litany of complaints by FHFA against these two GSEs, liberals in Congress, led by Congressman Barney Frank, repeatedly blocked attempts to rein them in. Here’s just one example:

    During a hearing on September 10, 2003 before the House Committee on Financial Services considering a Bush administration proposal to further regulate Fannie and Freddie, Rep. Frank stated: “I want to begin by saying that I am glad to consider the legislation, but I do not think we are facing any kind of a crisis. That is, in my view, the two government sponsored enterprises we are talking about here, Fannie Mae and Freddie Mac, are not in a crisis. We have recently had an accounting problem with Freddie Mac that has led to people being dismissed, as appears to be appropriate. I do not think at this point there is a problem with a threat to the Treasury.”

    Any way you slice it, liberals in Congress were reckless when it came to the massive taxpayer liabilities related to Fannie Mae and Fannie Mac and they should be held accountable for it.(unquote)

    Think about it…that was almost NINE years ago…

  41. #41
    On March 1st, 2012 at 3:25 pm, AlohaGuy said:

    Now that sentence would appear to be, if I’m using the term correctly, a “target-rich environment” for a punster….

    I edited out the most obvious…

  42. #42
    On March 1st, 2012 at 7:53 pm, Dasher said:

    I had some recent business with HUD on a relatives house, and it is interesting how they operate. Virtually every thing is contracted out!
    Servicing of the mortgage – contracted out
    HUD to take ownership of a reverse mortgage property;
    Managing the property – contracted out
    Asset manager – contracted out
    Broker – contracted out
    Winterizing the property – contracted out
    Final legal work on the property with their lawyers – contracted out

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