WASHINGTON – Operating as a ward of the federal government, Fannie Mae posted a massive $25.2 billion loss in the fourth quarter, blaming its abysmal performance on asset- and derivative-related writedowns.
For the year the Fannie lost an eye popping $58.7 billion.
The secondary mortgage market giant declared that it had a negative net worth of $15.2 billion at year-end -- a gap that must be filled with tax payer money.
James Lockhart, the director of Fannie’s new regulator, the Federal Housing Finance Agency, has already requested that the Treasury Department cover the financial hole by increasing its preferred stock ownership stake in the company. In 2007 Fannie lost just $2.1 billion. It was taken over by the Federal Housing Finance Agency in early September. Its common stock continues to trade on the NYSE but at just 40 cents a share.
