Mortgage finance company, Fannie Mae has requested an additional $15 billion in federal assistance. If the appeal is approved, the government aid total will reach $75 billion for the company. Further worrying are reports from the company that losses are likely to continue this year.
The bailout of Fannie Mae and sister company Freddie Mac has proven to be among the most financially draining bail outs of the meltdown. Together the two have wracked up $127 billion in financial assistance.
On Friday, Fannie cautioned that the company will need even more cash as a result of the continued home foreclosures, which have rose increasingly since 2008.
In the final quarter of last year, the company lost $16.3 billion, or $2.87 a share, including the $1.2 billion in dividends to the Treasury Department. While this is less than the $25.2 billion lost in the fourth-quarter of 2008, the Washington-based company is in very dangerous territory.
Recovery of unlimited losses has been promised to the company by the government through 2012, an extension on an earlier pledge of $400 billion.
In 2009, Fannie Mae lost a total of $74.4 billion, or $13.11 a share bringing total losses to $136.8 billion.
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