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Article: Study: Fannie Mae headed for big losses.
- Article from:
- United Press International
- Article date:
- March 10, 2004
CopyrightCOPYRIGHT 2004 United Press International. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON, Mar 10, 2004 (United Press International via COMTEX)
U.S. mortgage guarantor Fannie Mae paid $25.1 billion on derivative deals in less than four years, most of which may be losses that may affect earnings.
The potential scale of the liabilities, which have yet to be recognized in the company's earnings or in the minimum capital adequacy required by its regulator, raise fresh doubts about the financial health of the mortgage finance giant, the Financial Times reported Wednesday.
A Financial Times analysis of Fannie's accounts suggests it may have incurred losses on its derivatives trading of $24 billion between 2000 and the ...