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Capitol Report: Fannie Mae to turn to taxpayers after $6.5 billion loss

Mortgage finance provider Fannie Mae on Wednesday reported a fourth quarter net loss of $6.5 billion, a step that means it will draw billions from the U.S. Treasury.

Fannie’s losses were a result of the 2017 tax legislation that slashed the corporate tax rate, making tax credits it held on its balance sheet worth less, resulting in a $9.9 billion provision.

Fannie had net revenues of $5.5 billion in the last quarter, versus $6.2 billion in the year-ago period.

Many large companies have had similar profit hits in the fourth quarter thanks to the tax changes, but few are in the same precarious position as Fannie FNMA, -2.69% and its counterpart, Freddie Mac FMCC, -2.81% .

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