On Friday, another bad news came for the financial market when Fannie Mae reported a first quarter loss of around 23.2 billion dollars. The mortgage finance company also revealed that it has asked the Treasury department for 19 billion dollars. The mortgage giant has already asked 15.2 billion dollars last year to cover its losses in 2008.

Fannie Mae blamed the increasing unemployment rate while decreasing home prices for the losses that it has suffered. This net loss in the first – quarter is less than its fourth –quarter loss which was 25.2 billion dollars and which occurred right after the government
takeover.

The firm said that it expects to ask for more financial support from the government. According to the mortgage giants, there will be a net worth deficit in future periods because of the trends in housing and financial market recently. Thus, they will require more funds from the Treasury. The firm seems to be in big trouble when on Friday morning its stock fell about 7% to go less than $1 per share.