Freddie Mac posts $5 billion loss

Freddie Mac posts $5 billion loss

finance.yahoo.com

NEW YORK (Reuters) - Freddie Mac (NYSE:FRE - News; NYSE:FRE - News), the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing.

Increases in the value of securities Freddie Mac held over the period helped buoy its net worth, however, erasing its need to tap government funds for a second straight quarter to stay solvent while continuing to buy and guarantee home loans.

Including a $1.3 billion dividend payment on senior prefer

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"This means that Freddie Mac's survival will continue to depend on support from the government, which forced the company and Fannie Mae into conservatorship in September 2008.

Freddie Mac has taken $51.7 billion since then while Fannie Mae's draw will rise to $60.9 billion."

The quasi governmental Freddie Mac, defended by Dodds and Frank as unquestionable and unsinkable only 2 years is suddenly in deep do do!

What will be the solution of the venerable, always resourceful and honerable Senate and House Finance Committee leaders.?

Why, as always, throw more money at the problem. It worked in the past it will work now!

finance.yahoo.com
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reply to post by plumranch


Go Barney Foamatthemouth Frank!

Nothing to see here, move along.

What planet are you from, anyway?

[edit on 8-11-2009 by Libertygal]

reply to post by Libertygal

Go Barney Foamatthemouth Frank!

Barney the lovable fuzzball Frank?

Not so lovable as Frank presided over the powerful House Finance Committee long before the financial collapse when many foresaw the housing debacle. Barney's response was to laugh and say that it was too big to collapse. When it collapse inevitably happened he and Pelosi blamed Bush and the republicans even though Frank and Dodds had been in charge for the previous 2 years and had blocked all efforts to stop the financial collapse.

Barney will be the poster boy of the 2008 Financial Disaster when the investigations are finally done. Franks and Dodds, of course, will not investigate themselves, they will block all efforts.