Fannie Mae Says Its Long-Term Viablity May Be At Risk, Needs $8.4 Billion

Investing

Published: May 10, 2010 8:36 am

Last Updated: May 10, 2010 8:49 am

Admitting what the market already knows, Fannie Mae (NYSE: FNM) said in its 10-Q that

Accordingly, there continues to be uncertainty regarding the future of Fannie Mae, including whether we will continue to exist in our current form after conservatorship is terminated. The options for reform of the GSEs include options that would result in a substantial change to our business structure or in Fannie Mae’s liquidation or dissolution.

The cause of the statement is the $11.5 billion loss that the company posted in its first quarter. Most of the losses were do to the deteriorating housing market. It credit-related deficits consist of provision for loan losses, provisions for guaranty losses and foreclosed property expense.

The most important figure in the filing may be the average default rates for the quarter were .46% up from .17% in the period a year ago

Douglas A. McIntyre

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.