Fannie Mae Reports $11.5 Billion Loss

Would you invest in a company that lost $11.5 billion in three months? Some members of the government are rejecting the idea. Financial giant Fannie Mae reported the eleven-digit loss was reported on Monday; the company would require $8.4 billion from taxpayers to stay in business. Despite lawmakers’ earlier support, a proposal by Republican Senators John McCain, Richard Shelby and Judd Gregg is calling for the government to withdraw its involvement within two years, and for Fannie Mae and Freddie Mac (the latter of which reported a $6.7 billion loss) to begin paying state and local sales taxes on a reduced mortgage portfolio. Last year, in an effort to revitalize the broken companies, Obama pledged unlimited backing—but with the price tag to be at $145 billion, lawmakers are feeling uneasy. Democrats, however, worry that any disruption may worsen the economy, and Senate Banking Committee Chairman Chris Dodd called the proposal “reckless” and “poorly thought out.”