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This is the income statement for Fannie Mae for the year of 2009. Scroll down to the bottom and take a look at the losses they acquired. It is pretty amazing to see how much money they were losing as a result of the housing market crash. http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=fnm&period=qtr
It is not a surprise to me on how much money they lost because they were the leader of sub-prime mortgages so when that fell out, a lot of their money did too!
ReplyDeleteI find that negative 5 Mill in investment banking profit to be disturbing as well. I wonder what changes they will make...as we can tell so far they are not doing great, cmon son!
ReplyDeleteI agree with both of these posts. Its not surprising at all to see the substantial amount of money lost. It just shows that almost everything in our economy is still hurting from this crises.
ReplyDeleteI guess if your entire business is based on mortgages and their legitimacy, the extreme money loss makes sense when the bubble crashed due to sub-prime and stated income type mortgages. The question is will they learn anything from this and act differently in the future?
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