The bad news continued Thursday for Fannie Mae as the government-held mortgage giant revealed a jump in its second-quarter losses, then asked the U.S. Treasury for another $10.7 billion in funding. The company said in a government filing that it lost $14.8 billion in the most recent quarter — $12.5 billion more than it lost in the same quarter last year. Fannie’s already-immense credit obligations were “adversely affected by the ongoing deterioration in the housing and mortgage markets, the economic recession

and rising unemployment,” the company said. The request for additional government aid comes after the Treasury already gave Fannie two infusions of cash this year, totaling $34.2 billion. But the company said it had no alternative but to ask for more government subsidies. “Due to current trends in the housing and financial markets, we expect to have a net-worth deficit in future periods,” the filing continued. “As a result, we are dependent on the continued support of Treasury in order to continue operating our business.” The news of Fannie’s growing insolvency came as the government discussed the company’s future. DS News reported Thursday that federal regulators are considering stripping Fannie and fellow government-sponsored mortgage company Freddie Mac of their toxic assets and depositing them in a “bad bank” to restore confidence in the firms. White House officials have said that is just one of several possible plans for the companies, and liquidation or nationalization might be viable alternatives. At 11 a.m. EDT Friday, shares of Fannie Mae stock were down 12.7% to 69 cents a share.