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Post Info TOPIC: Freddie Mac to Ask for Another $6 Billion


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Date: Nov 16 15:01:08 2011
Freddie Mac to Ask for Another $6 Billion

Government-run mortgage insurer Freddie Mac indicated this week that it will seek another $6 billion in federal bailout assistance following its worst quarterly loss ever.  The mortgage giant posted a comprehensive loss of $4.4 billion for the three months ended September 30th, according to a filing with the US Securities and Exchange Commission, which was four times the size of its $1.1 billion loss in the previous quarter.

Part of the loss was attributed to a $1.6 billion dividend payment which Freddie was required to pay to the Treasury, forcing the company to declare a net worth deficit of $6 billion.  Since being placed under a government conservatorship along with Fannie Mae in September 2008, Freddie has drawn more than $72 billion in taxpayer-funded bailout funds. 

The two firms were seized in an attempt to prevent the collapse of the housing market when mounting mortgage losses threatened to bankrupt them.  Between the two companies, they own or guarantee more than half of all mortgages in the United States.

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