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URL:  https://boards.fool.com/fnm-again-20461448.aspx

Subject:  FNM, again Date:  3/9/2004  6:02 PM
Author:  solasis Number:  264 of 297

Fannie Mae faces $25bn in derivatives losses
By Stephen Schurr in New York
Published: March 9 2004 19:31 | Last Updated: March 9 2004 19:31

Fannie Mae paid a net $25.1bn on derivatives transactions in under four years - nearly all of which may represent losses that cannot be recouped, in turn depressing future earnings.
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The potential scale of the liabilities, which have yet to be recognised 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.
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Regulation of Fannie Mae and its sibling Freddie Mac is rapidly moving up the agenda in Washington, amid concerns that the two goverment-sponsored entities have grown so big that they pose a systemic risk to the US financial system. The two entities own or guarantee mortgages totalling $4,000bn.

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