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Fannie Needs First U.S. Aid Since 2012 After Tax-Cut Loss

  • Company set to seek $3.7 billion after fourth-quarter loss
  • Capital need was expected, Fannie says business remains strong
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Photographer: CHRIS RANK
Updated on

Fannie Mae will request an infusion of taxpayer money for the first time since 2012 because of an unintended but anticipated side effect of the corporate tax cut signed into law in December.

The mortgage-finance company, which reported fourth-quarter and full-year financial results on Wednesday, said it will need to draw $3.7 billion from the U.S. Treasury in March to keep its net worth from going negative.