Fannie Mae reported a $25.2 billion fourth-quarter loss Thursday evening and said its net worth dipped below zero, prompting the troubled mortgage giant to seek a $15.2 billion capital infusion from the Treasury Department.Washington, D.C.-based Fannie said its net worth - the difference between its assets and liabilities - fell to negative $15.2 billion as of Dec. 31. Its last reported net worth was $9.4 billion on Sept. 30.The fourth-quarter loss amounted to $4.47 a share, compared to a loss of $3.6 billion, or $3.80 a share, in the year-ago period.
For the full year, the company lost $58.7 billion, or $24.04 a share, compared to a $2.1 billion, or $2.63 a share, in 2007.Fannie Mae, which was taken over by federal regulators last fall, attributed the dismal results to continued deterioration of its mortgage-related investments.
"We expect the market condition that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth," the company said it the media statement that accompanied the earnings filing with the Securities and Exchange Commission.The Treasury originally had committed $100 million in capital to help Fannie Mae, but on Feb. 18 the department increased its pledge to $200 million.
Its mortgage counterpart, McLean, Va.-based Freddie Mac, also under federal conservatorship, is expected to announce its fourth-quarter and year-end results shortly. Freddie Mac has already received $14 billion in capital infusion from the government.