Freddie Mac suffers six billion dollar quarterly loss
Oh the pain. And rumor has it that the US government (read Obama and his fellow Socialists) soon want to bail out the +/-14 million mortgages that are in the red – which will add another $800 bn to the national debt. Why? For votes and to “redistribute” the wealth to his friends…You gotta love communism! I just may change my political view if it means I get free everything! Why work?
Troubled US mortgage firm Freddie Mac reported Monday a second quarter net loss of six billion dollars and sought another 1.8 billion dollars from the Treasury to contain the red ink.
The government-backed company said its strategies to boost business and “sustainable homeownership” were taking hold but cited high unemployment posing “very real challenges” for the already embattled housing market.
Freddie Mac suffered a 6.009 billion dollar net loss attributable to common stockholders in the April-June period from a loss of 7.980 billion dollars in the first quarter and 840 million dollars in the year ago period.
“We recognize that high unemployment and other factors still pose very real challenges for the housing market,” said Freddie Mac chief executive Charles Haldeman.
“With that in mind, we continue to focus on the quality of the new business we are adding to our book to be responsible stewards of taxpayer funds as we support the nation’s housing market.”
Freddie Mac and its twin state-backed mortgage firm Fannie Mae have been riddled with massive losses from loans they acquired during a home mortgage meltdown that plunged the US into a brutal recession in December 2007.
Fannie Mae said last week it lost 3.1 billion dollars in its second quarter, and needed 1.5 billion dollars from the US Treasury to wipe out its deficit as of the end of June.
Freddie has sought more than 60 billion dollars in federal aid so far while Fannie’s bill has ballooned to more than 85 billion dollars.
The Treasury last month promised a reform plan for both the entities by January.
Collectively, the two firms pumped 5.9 trillion dollars into the mortgage market, accounting for almost three quarters of the sector.