Fannie Mae posts $19B shortfall

May 8, 2009 at 3:37 PM

WASHINGTON, May 8 (UPI) -- The Federal National Mortgage Association said it lost $23 billion in the first quarter, prompting a fund transfer of $19 billion from the U.S. Treasury.

The government's agreement with Fannie Mae, when it seized the company in September, included a transfer of funds to make up for any shortfalls, The Washington Post reported Friday.

The government had already given the mortgage broker $15 billion in emergency funds. It has since said it would make $200 billion available to both Fannie Mae and Freddie Mac to keep them afloat. The Federal Home Loan Mortgage Corp. -- Freddie Mac -- has already received $50 billion.

In a statement, Fannie Mae said it expects "net worth deficit in future periods, and therefore will be required to obtain additional funding from the Treasury."

The news comes on the heels of the U.S. Department stress test results, released Thursday, that said the country's 19 largest banks required $74.5 billion in additional capital to protect themselves from further economic declines.

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