2. Fannie Mae
2. Fannie Mae
Fortune 500 rank: 8
2011 revenue: $137.5 billion
10-year annualized return: -44.0%
Ticker: FNMA
The Washington, DC-based mortgage giant continues to post mounting profits as it slowly repays the government and deals with record-low interest rates. Since 2008, Fannie Mae has been under government ownership. The company was seized along with rival Freddie Mac after subprime mortgage losses pushed them toward insolvency. In 2011, Fannie reported a $16.9 billion net loss, wider than the $14 billion loss a year earlier, and driven primarily by a $6.1 billion shortfall on derivatives used to manage risk caused by lower interest rates.

Fannie is in for another tough year as housing prices continue to fall. In February, Fannie sought more aid from the government to close a deficit caused partly by a dividend it is required to pay to the U.S. Treasury on the government's ownership stake.


By Nin-Hai Tseng, writer and Shelley DuBois, writer-reporter @FortuneMagazine - Last updated May 07 2012: 10:56 AM ET
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