Major US lender seeks $8.4bn more aid

Troubled US mortgage lender Fannie Mae has asked for more federal funds to survive, as the American housing market continues to struggle with huge losses.

Press TV, 11 May 2010

The government-sponsored company announced on Monday that it lost over $13 billion in the first three months of this year.

It now says that it needs $8.4 billion to stay afloat.

The new appeal - if accepted - will bring the total cost of the government's bailout of Fannie and its sibling company, Freddie Mac, to $145 billion.

The company has also stated that "Freddie Mac expects to request additional draws."

The bailout of the two mortgage giants is turning out to be one of the most expensive after-effects of the 2007 US financial meltdown.

President Barack Obama's administration has pledged to cover unlimited losses through 2012 for Fannie and Freddie which could surpass $400 billion.

The White House has also launched a public comment period to plan the reform of the two companies or the broader housing finance system.

But officials say it is still too early to draft reform proposals, as the US housing market is still on shaky grounds.