Posted 1 year ago on Nov. 3, 2011, 7:39 p.m. EST by MonetizingDiscontent
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Freddie Mac Seeks $6 Billion From U.S. Treasury as Quarterly Loss Widens
Freddie Mac, one of two mortgage- finance companies under U.S. conservatorship, reported a $4.4 billion loss for the third quarter and said it will seek $6 billion from the U.S. Treasury Department.
The company, confronted with a weak housing market and losses on derivatives, will draw on its Treasury cash lifeline to eliminate a net-worth deficit of $6 billion for the three- month period ending Sept. 30, according to a Securities and Exchange Commission filing today.
Today’s request brings Freddie Mac’s total Treasury draw to $72.2 billion. The company has returned $14.9 billion of that money to taxpayers in the form of dividend payments to the government. Freddie Mac’s $1.6 billion dividend payment in the third quarter contributed to its net-worth deficit, the company reported.
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