The government must be ruing the day it decided to stand behind these mortgage giants and guarantee their obligations.
Freddie Mac (FMCC) on Thursday reported a fourth-quarter net loss of $113 million, and would need another sip from the government trough.
The loss narrowed from a $2.5 billion net loss during the third quarter. For all of 2010, the government-sponsored mortgage giant lost $14 billion, following a $21.6 billion loss during 2009.
Freddie Mac’s net worth was a negative $401 million as of December 31 “due to several contributing factors including its $1.6 billion quarterly dividend payment to Treasury,” and the Federal Housing Finance Agency as conservator was set to “submit a $500 million draw request to Treasury,” which would increase the government’s stake in the company to $64.7 billion.
Along with Fannie Mae (FNMA), Freddie Mac was taken into government conservatorship in September 2008.
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