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		<title>About the Politically Malleable FASB, Paid for Politicians, and Mark to Myth Accounting Rules</title>
		<description>Discuss About the Politically Malleable FASB, Paid for Politicians, and Mark to Myth Accounting Rules</description>
		<link>http://boombustblog.com/reggie-in-the-news/item/1230-about-the-politically-malleable-fasb-paid-for-politicians-and-mark-to-myth-accounting-rules</link>
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			<title>Reggie Middleton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/1230-about-the-politically-malleable-fasb-paid-for-politicians-and-mark-to-myth-accounting-rules#comment-2188</link>
			<description><![CDATA[Feb. 27 (Bloomberg (http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ7Vw70CckxU&pos=1)) -- Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss. The mortgage-finance company posted a fourth-quarter net loss of $16.3 billion, or $2.87 a share, Washington-based Fannie Mae said in a filing yesterday with the Securities and Exchange Commission. Fannie Mae, which owns or guarantees about 28 percent of the $11.8 trillion U.S. home-loan market, has been hobbled by a three-year housing slump that wiped 28 percent from home values nationwide and led to record foreclosures. The company, which posted $120.5 billion in losses over the previous nine quarters, and rival Freddie Mac were seized by regulators in September 2008. â€œOur financial results for 2009 reflected the continued adverse impact of the weak economy and housing market, which has resulted in record mortgage delinquencies and contributed to our recording significant credit-related expenses and net losses during each quarter of the year,â€ Fannie Mae said in the filing. For the full year, Fannie Maeâ€™s loss widened to $74.4 billion from $59.8 billion in 2008. The companyâ€™s shares, which peaked at $87.81 in December 2000, closed at 99 cents yesterday in New York Stock Exchange composite trading. The Treasury owns 79.9 percent of the companyâ€™s outstanding common stock. Avoiding Receiver After the next government payout, Fannie Maeâ€™s borrowings will carry an annual dividend cost of $7.6 billion, which the company said it will repay by borrowing more money from the Treasury. â€œThis amount exceeds our reported annual net income for all but one of the last eight years, in most cases by a significant margin,â€ the company said. The company said the ability to tap continuing cash infusions from the Treasury this year â€œis critical to keeping us solvent and avoiding the appointment of a receiver.â€ The loss in the fourth quarter was driven in part by a $5 billion writedown on low-income housing tax credits that the Treasury Department barred the company from selling. Rival Freddie Mac took a $3.4 billion charge for the same reason. Losses at Fannie Mae are likely to grow with rising unemployment and costs to implement President Barack Obamaâ€™s plans to reduce foreclosures, the company said.]]></description>
			<dc:creator>Reggie Middleton</dc:creator>
			<pubDate>Sat, 27 Feb 2010 06:45:02 +0000</pubDate>
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