Freddie Mac seeks further $6bn from taxpayers

Posted: November 3, 2011 in Economic Crisis, US News

Shahien Nasiripour
Financial Times
November 3, 2011

Freddie Mac, the US-controlled mortgage financier, has requested an additional $6bn from US taxpayers, following a $4.4bn third-quarter loss, the company’s worst three-month performance in more than a year.

The home loan group said more homeowners were falling behind on their obligations and it could not count on mortgage insurers to reimburse the company for losses. Freddie set aside $3.6bn in provisions for credit losses, its highest total since the third quarter of last year.

The additional $6bn brings its total bailout from the government to $72.2bn, of which $14.9 has been returned in the form of dividends. Fannie Mae, Freddie’s much larger rival, is due to report its earnings in the coming days.

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