Fannie Mae posts record $29 bn loss

...AND THEY ALL CAME TUMBLING DOWN

Fannie Mae said on Monday it is losing money so fast it may have to tap the government for cash to avoid shutting down after the largest source of funding for US homes reported a record $29 billion loss. The company, which along with rival Freddie Mac owns or guarantees about half of U.S. mortgages, reported its fifth consecutive quarterly loss.

The government forced the two companies into conservatorship in September. Fannie Mae warned that the worst housing crisis since the Great Depression could wipe out its net worth by the end of the year, forcing it to obtain funding from the US Treasury in order to avoid the government putting it into receivership and closing its operations.