Freddie Mac

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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4235
Freddie Mac

 

Check out the last two paragraphs on this one:Sealed

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"Fannie Mae, the largest U.S. mortgage-finance company, has posted $120.5 billion in net losses in the nine quarters ended in September and requested $59.9 billion in Treasury aid.

Housing Prices

Freddie Mac and Fannie Mae, now own or guarantee more than $5 trillion in U.S. residential debt, and were responsible for as much as 75 percent of the new mortgages made last year.

Losses at Freddie Mac are likely to grow with rising unemployment and costs to implement President Barack Obama’s housing plans, the company said.

Fannie Mae and Freddie Mac survived last year on $200 billion each in emergency financing pledged by the Treasury after regulators put the two in conservatorship in September 2008. The Treasury on Christmas Eve raised that lifeline to an unlimited amount through 2012. The U.S. government makes the payments through preferred stock purchases when the value of the companies’ assets drop below the amount owed on their obligations.

Freddie Mac’s draws from the Treasury carry a 10 percent annual dividend of about $5.2 billion, according to today’s regulatory filing. The amount exceeds the company’s annual historical earnings in most periods and “could contribute to the need for additional draws from Treasury,” Freddie Mac said. The company said its ability to repay Treasury is limited and “we may not be able to do so for the foreseeable future, if at all.” "

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Freddie Mac

Freddie Mac’s draws from the Treasury carry a 10 percent annual dividend of about $5.2 billion, according to today’s regulatory filing. The amount exceeds the company’s annual historical earnings in most periods and “could contribute to the need for additional draws from Treasury,” Freddie Mac said. The company said its ability to repay Treasury is limited and “we may not be able to do so for the foreseeable future, if at all.” "

WTF?

So they are saying that they know they are insolvent but "oh well..."?

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