Financial Times FT.com

Fannie Mae taps Treasury for further $19bn

By Saskia Scholtes in New York

Published: May 8 2009 15:04 | Last updated: May 8 2009 15:04

Fannie Mae said on Friday it would draw a further $19bn of assistance from the US Treasury after a seventh consecutive quarterly loss – $23.2bn in the first quarter – drove its net worth below zero.

Fannie said it expected more red ink in future quarters, which would require further help from the government. The company added that its role as programme administrator for the government’s housing market rescue would likely have an adverse effect on the company’s financial condition.

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