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Forum Post: Freddie Mac Seeks $6 Billion From U.S. Treasury as Quarterly Loss Widens

Posted 11 years ago on Nov. 3, 2011, 7:39 p.m. EST by MonetizingDiscontent (1257)
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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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[-] 1 points by JonoLith (467) 11 years ago

And they say the Banks don't own our Government.

[-] 1 points by gestopomilly (497) 11 years ago

this is ok as long as the money goes to forgive the mortgages they are claiming caused this loss. but if they are going to take the houses anyway then no. then they will try to sell them, and make back the welfare payment the government just gave them. thats called welfare fraud

[-] 1 points by ModestCapitalist (2342) 11 years ago

The most profitable industries in the world (energy, healthcare, finance) have been given billions in government handouts and tax breaks. Meanwhile, they keep raising charges causing hardship for millions. With all those massive handouts, tax breaks, and obscene charges, profits rise to record high levels. Millions in bonuses are paid to the executives. With record high profits, record high dividends are paid. 40% of all dividends in the United States are paid to the richest one percent. The bottom 90 percent of Americans share about 10 percent (that's ten percent) of all dividends. The rest are paid to the top 5 percent and foreign investors. All of this causes a gradual concentration of wealth and income. This results in a net loss for the lower majority who find it more and more difficult to cover the record high cost of living, which again, is directly proportional to record high profits for the rich. As more and more people struggle to make ends meet, more and more financial aid becomes necessary. Most of which goes right back to the health care industry through Medicare, Medicaid, and a very expensive prescription drug plan. This increases government spending. This has been happening for 30 years now. During the same time, tax rates have been lowered drastically for the richest one percent. Especially those who profit from investments. These people pay only 15 percent on capital gains income. As even more wealth concentrates, the lower majority find it more difficult to sustain there share of the consumer driven economy. Demand drops as more and more people go broke. Layoffs results. Unemployment rises. This results in less revenue and more government debt.

Massive subsidies and tax breaks for Wall Street, massive tax breaks for the super rich, heavy concentration of wealth, record high charges along with record high profits and record high cost of living, more hardship for the lower majority, more government spending in the form of financial aid to compensate, more concentration of wealth, less demand, layoffs and unemployment. All of this results in slower economy and less tax revenue. At the same time more and more financial aid becomes necessary. It's a horrible downward cycle which gradually pushes the national debt higher and higher. The other big factors are the wars in the Middle East.

This post is not intended to excuse those who sit on the couch collecting welfare, make no attempt to find work, or squease out kids they can't provide for.

[-] 1 points by ramous (765) from Wabash, IN 11 years ago

No No No No No No No

[-] 0 points by sppratam (-14) 11 years ago

Talk about throwing good money after bad...