Financial Times FT.com

Fannie to draw $15bn from Treasury

By Saskia Scholtes in New York

Published: November 6 2009 00:42 | Last updated: November 6 2009 00:42

Fannie Mae said on Thursday that it would draw another $15bn of funds from the US Treasury after a ninth consecutive quarterly loss – $19.8bn in the third quarter – drove its net worth below zero.

The loss at the government-run mortgage financier was largely due to $22bn of credit expenses as the company built its loss reserves against mounting mortgage defaults.

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