DrTorch
Proved mach and GTS to be liars
Posts: 35,887
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Fannie Mae continues to suck from the Fed
http://market-ticker.denninger.net/archi...annie.html
Quote:May 10 (Bloomberg) -- Fannie Mae, the mortgage-finance company operating under federal conservatorship, said it will seek $8.4 billion in aid from the U.S. Treasury Department after reporting its 11th-straight quarterly loss.
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When Treasury provides the requested funds, the aggregate liquidation preference on the senior preferred stock will be $84.6billion, which will require an annualized dividend of approximately $8.5 billion. This amount exceeds our reported annual net ncome for each of the last eight fiscal years, in most cases by a significant margin.
This, in English, means "We do not earn enough in a quarter to pay the dividend - that is, the interest on the borrowed money."
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05-10-2010 03:08 PM |
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