Fannie, Freddie `Insolvent' After Losses, Poole Says

[Relik]

http://www.bloomberg.com/apps/news?pid=20601087&sid=as4DEc5UFopA&refer=home


Chances are increasing that the U.S. may need to bail out Fannie Mae and the smaller Freddie Mac, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, he said. The fair value of Fannie Mae's assets fell 66 percent to $12.2 billion, data provided by the Washington-based company show, and may be negative next quarter, Poole said.