Fannie Mae may post a record net loss in its first quarterly report since being seized by regulators as Herb Allison, its chief executive, writes off bad debt and increases default estimates, observers say.

The mortgage finance company may report a third-quarter loss of at least $20 billion, including a previously announced plan to write down most of its tax credits, according to Howard Shapiro at Fox-Pitt Kelton Cochran Caronia Waller in New York.

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