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MAIN SUB-PRIME LOSSES SO FAR
Merrill Lynch: $14.1bn
Morgan Stanley $9.4bn
Bear Stearns: $3.2bn
Deutsche Bank: $3.2bn
Bank of America: $3bn
Royal Bank of Scotland: $2.6bn
Freddie Mac: $2bn
JP Morgan Chase: $3.2bn
Credit Suisse: $1bn
Source: Company reports
Fannie Mae, the giant mortgage finance company, faces much bigger losses from interest rate swings than it has publicly disclosed, according to computer models used by the company to estimate the value of its assets and debts.
the market value of all the assets on Fannie Mae's books, minus all the company's debts, was about $15 billion. So it would have lost roughly half its market value from such a sharp increase in interest rates, according to the models.
With $923 billion in assets, Fannie Mae is the second-largest financial company in the United States, trailing only Citigroup. Fannie Mae, which is sponsored by the federal government, helps keep mortgage rates down by buying mortgages from banks and selling them or its own bonds to investors around the world. But some investors and outside experts say the company has become dangerously large and highly leveraged, with too much debt and not enough equity.
The models were provided to The Times by a former Fannie Mae employee, in return for assurance that he not be identified.