Raising the likelihood that the mortgage finance company Fannie Mae would survive in the long run only on the basis of sustained federal funding, the company Friday sought an additional $19-billion aid from the US Treasury, over and above the most-recent $15.2-billion assistance it availed on March 31. The additional aid will increase Fannie Mae's yearly dividend payments to the Treasury from $1.6 billion to $3.5 billion.

In its filing with the Securities and Exchange Commission, the Washington-based Fannie Mae - which is operating under federal conservatorship - mentioned the increasing job losses and the risky loans made during the housing boom going exceedingly bad. It said that the "unprecedented" housing market slump and government-mandated programs that are creating "conflicts in strategic and day-to-day decision making."

Further, Fannie Mae has already forewarned the regulators that it may still need additional funds in the near future. In fact, in its regulatory filing the company has said that its long-term financial sustainability was quite a "significant uncertainty," and that even more government aid may prove insufficient to keep the company "in a solvent condition."

Fannie Mae has increased its reserves for future credit losses to $41.7 billion in 2009 first quarter, from the earlier quarter's $24.8 billion. Moreover, since the 2007 third quarter, the company has posted net losses totaling a monstrous $87 billion!