The Feed

Big Bucks: Freddie Mac Asks For Another $10.6 Billion

Troubled US government-backed mortgage firm Freddie Mac on Wednesday asked for an additional 10.6 billion dollars from the Treasury Department to cover losses.

Announcing a 6.7 billion dollar loss in the first quarter, Freddie Mac said it would need the new funding by June 30 this year.

The Washington-area company has already received more than 50 billion dollars in taxpayers cash to cover losses from toxic assets.

It warned that further demands would be on the way: “Freddie Mac expects to request additional draws,” the firm said in a statement.

“The size and timing of such draws will be determined by a variety of factors that could adversely affect the company’s net worth.”

In 2008, the government pledged to ensure that Freddie Mac, and its larger sister organization Fannie Mae, kept a “positive net worth.”

The deal was designed to prop up the vital US housing market from collapsing totally and pushing the economy over the precipice.

Most Popular

Politics & Policy

‘We Can’t Afford It’

Leon Trotsky — n.b., Millennials: He was Alexandria Ocasio-Cortez before she was — understood the power of single-payer systems: “The old principle: who does not work shall not eat, has been replaced with a new one: who does not obey shall not eat.” The socialist powers of Trotsky’s time made good on ... Read More