Friday, May 08, 2009

The New and Better Fannie!

Oh, man.

Fannie reported 1Q 2009 results and, bluntly, they blew big bananas.

They lost $4.09 a share (!) and will be "asking" for $19 billion from Treasury. That's the bad news.

The worse news is:

They see home price declines of 7-12% nationally for 2009.

They see "losses continuing" and see "09 credit losses exceeding 2008."

They don't see the firm operating profitably in "the foreseeable future."

Offshore Fannie. Keep GM here instead. Less cost.

HT: Ticker

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