Fannie Mae seeks $ 8.5 billion more by the Federal Government (AP)

WASHINGTON - Fannie Mae asked the Government Friday for 8.5 billion in aid after the decline of housing prices caused more defaults on loans secured by the mortgage giant.

The company said lost $ 8.7 billion in the first three months of the year. These losses led Fannie asking more than three times the federal assistance he requested in the previous quarter. The cost total save the buyer Government-controlled mortgage is almost 100 billion dollars - the most expensive rescue of a single business plan.

Combined with the company's sister Freddie Mac rescue plan, the Government is expected to help taxpayers about $ 259 billion. That money will cover the losses of the giants of soured mortgage loans granted in the real estate bubble.

Housing prices declined on average 1.8% across the country during the January-March quarter, said Fannie Mae. That led to several seizures and the owners of houses worth less that they have towards their mortgages abandonment.

"We expect our credit losses to remain high in 2011, while we continue to be negatively affected by declining real estate prices extended" President and CEO Michael Williams said in a statement.

The losses in the first three months of the year are related to loans have been extended until 2009, said Fannie Mae. The company expects to earn money on the mortgage loans it has acquired since January 2010.

The companies reversed almost because of losses on risky mortgages that they bought between 2005 and 2008. They were tightening their criteria for credit after the start of these loans go bad.

Fannie and Freddie buy mortgages from banks and other lenders, their links with a guarantee against default package and sell them to investors around the world.

When property drop, default owner values - either because they are unable to afford the payments, or because they have more that the property is a value. Because of the guarantees, Fannie and Freddie must pay for the losses.

Fannie Mae, based in Washington, and Freddie Mac, based in McLean, Virginia, own or guarantee about half of all mortgages in the United States, or almost 31 million dollars of real estate loans worth more than 5 trillion. With other federal agencies, they supported nearly 90 percent of new mortgages in the past year.

In February, the Obama administration unveiled a plan to slowly dissolve the mortgage companies. The objective is to reduce the role of Government in mortgage loans. Exactly how that would produce left for Congress to decide.

Whatever the result, he would reverse decades of policy of the Federal Government to encourage Americans to buy a House. Mortgage would almost certainly more expensive.

January-March of Fannie Mae loss attributable to ordinary shareholders works $1.52 per share. It takes into account 2.2 billion in payments of dividends to the Government. That compares to a loss of 13.1 billion dollars, or $2.29 per share, in the same period last year.

Fannie Mae seeks $ 8.5 billion more by the Federal Government

WASHINGTON - Fannie Mae asked the Government Friday for 8.5 billion in aid after the decline of housing prices caused more defaults on loans secured by the mortgage giant.

The company said lost $ 8.7 billion in the first three months of the year. These losses led Fannie asking more than three times the federal assistance he requested in the previous quarter. The cost total save the buyer Government-controlled mortgage is almost 100 billion dollars - the most expensive rescue of a single business plan.

Combined with the company's sister Freddie Mac rescue plan, the Government is expected to help taxpayers about $ 259 billion. That money will cover the losses of the giants of soured mortgage loans granted in the real estate bubble.

Housing prices declined on average 1.8% across the country during the January-March quarter, said Fannie Mae. That led to several seizures and the owners of houses worth less that they have towards their mortgages abandonment.

"We expect our credit losses to remain high in 2011, while we continue to be negatively affected by declining real estate prices extended" President and CEO Michael Williams said in a statement.

The losses in the first three months of the year are related to loans have been extended until 2009, said Fannie Mae. The company expects to earn money on the mortgage loans it has acquired since January 2010.

The companies reversed almost because of losses on risky mortgages that they bought between 2005 and 2008. They were tightening their criteria for credit after the start of these loans go bad.

Fannie and Freddie buy mortgages from banks and other lenders, their links with a guarantee against default package and sell them to investors around the world.

When property drop, default owner values - either because they are unable to afford the payments, or because they have more that the property is a value. Because of the guarantees, Fannie and Freddie must pay for the losses.

Fannie Mae, based in Washington, and Freddie Mac, based in McLean, Virginia, own or guarantee about half of all mortgages in the United States, or almost 31 million dollars of real estate loans worth more than 5 trillion. With other federal agencies, they supported nearly 90 percent of new mortgages in the past year.

In February, the Obama administration unveiled a plan to slowly dissolve the mortgage companies. The objective is to reduce the role of Government in mortgage loans. Exactly how that would produce left for Congress to decide.

Whatever the result, he would reverse decades of policy of the Federal Government to encourage Americans to buy a House. Mortgage would almost certainly more expensive.

January-March of Fannie Mae loss attributable to ordinary shareholders works $1.52 per share. It takes into account 2.2 billion in payments of dividends to the Government. That compares to a loss of 13.1 billion dollars, or $2.29 per share, in the same period last year.

AIG seeks to recover billions, he lost to fraud (Reuters)

 American International Group Inc. sued two companies managing cash Thursday in the beginning of a fight to recover billions of dollars, the refloated-out insurer said he lost because of fraud.

The insurer, 92% owned by the Government of the United States, joined the ranks of swelling of investors and insurers that take on Wall Street on so-called safe investments related to the mortgage at the heart of the financial crisis of 2008.

Insurance giant sued ICP Asset Management and Moore Capital of the New York State Supreme Court, but indicated that legal proceedings have been the beginning of a campaign that would put the major Wall Street banks in its sights.

AIG, which received $ 182 billion in rescue money, argued that he suffered losses through mortgage-backed securities that created one of the financial companies.

PIC could not be reached immediately for comment. A spokesman for Moore said: "we haven't seen the complaint and therefore cannot comment."

AIG campaign will probably aim to Bank of America Corp., Goldman Sachs Group Inc., and other Wall Street banks, according a person familiar with the strategy of AIG.

Banks selling mortgage bonds AIG with range high credit ratings have fallen since value.

Goldman Sachs and the Bank of America declined to comment on.

Investors, bond insurers and the Federal home loan banks have already sought tens of billions of dollars of banks for misrepresenting the quality of real estate loans that were packaged in bonds called mortgage-backed securities.

While none of the lawsuits went to trial, Bank of America recently concluded an agreement of $ 1.6 billion with the insured Guaranty Ltd., who has insured the mortgage bonds. Some legal, and financial analysts said that many showed the legal claims that pose a real risk to banks.

PART OF THE LARGER REVIEW

AIG reported that prosecution more could be on the road.

"At the annual meeting last year, CEO of AIG Bob Benmosche said that we would review our reports with all counterparties with whom we have business before and during the crisis to see if they we aggrieved by their behavior.". This combination is the first result of this review, the company said.

The prosecution was brought by AIG financial products unit in the context of "overall efforts the insurer to recover potentially billions of dollars of the fraudulent conduct of the defendants and the other parties", said the complaint.

Some stock analysts announce the ultimate cost of claims against various titles of mortgages from banks could reach tens of billions of dollars.

Claims could put an end to their return from America alone almost $ 30 billion, said Chris Gamaitoni, an analyst with Compass Point research & Trading LLC.

However, that could be spread over many years as a large part of the issue has bogged down in the procedure.

The United States Government rescued AIG at 2008 financial panic, pumping billions into society, after she and other giant financial companies suffered huge losses of securities linked to the crash of the housing market United States.

A great advantage of the rescue of AIG and will store possible Government before the 2012 U.S. elections would be a boost for the administration of Obama kick, in the wake of the success to Citigroup Inc. and General Motors Co.

A spokesman for the US Treasury, he was not involved in the decision to prosecute those responsible for the money.

350 MILLION ALLEGED DAMAGES

The trial said obligations breached defendants for AIG related to the creation of obligations backed complex or CDO.

AIG said it has suffered more than 350 million dollars in damages and interests of the alleged misconduct, which included using values inflated on mortgage bonds that were packed in the CDO. Inflating values, PKI created windfall profits for itself and to enlarge its management fees, the prosecution argued.

The complaint is based on the continuation of dry last year against PKI in Manhattan Federal Court, accusing the investment advisory firm of violating federal securities laws on several occasions.

The case of AIG is products financial AIG c peak Asset Management LLC et al, Supreme Court of New York, New York County, no. 651117/2011.