Freddie Mac posted a second-quarter loss as prior-year derivative gains were losses in the latest period for the mortgage financier, which said it would request another $1.8 billion in government aid.
The company's ongoing bottom-line woes come as delinquencies industrywide have stopped getting worse. In Freddie's portfolio, they fell in June from a month earlier after being flat in May and falling the prior two months, the first declines in three years.
For the quarter, its single-family delinquency rate was 3.96%, compared with 2.89% a year earlier and 4.13% in the first quarter.
Freddie posted a loss of $4.71 billion, compared with a prior-year profit of $302 million. Including preferred-dividend payments to the Treasury Department, the company's per-share loss widened to $1.85 from 26 cents. The company posted $3.84 billion worth of derivatives losses for the quarter, compared with gains of $2.36 billion a year earlier.
Credit-loss provisions were $5.03 billion, down from $5.67 billion a year earlier and $5.4 billion in the first quarter.
Last week, sister company Fannie Mae posted its smallest quarterly loss in three years amid signs the wave of souring loans that brought it down may be easing. Both companies were placed under conservatorship in 2008 to prevent potential implosions at the height of the credit crisis. Freddie has asked for more than $60 billion in federal aid, while Fannie's tap tops $85 billion.
Freddie and Fannie's shares began trading on the over-the-counter market in July after the company's federal regulator ordered them to delist from the New York Stock Exchange after the company's shares failed to meet listing standards.
Grandpa:
Nicley done Timmy G, $150+ billion and counting, reminds me of Christmas Eve 2009 Twas the night before Christmas (2009), when all through the house
The only creature stirring was Geithner the louse
The children were nestled all snug in their beds,
While visions of sugar-plums danced in their heads;
And mamma in her 'kerchief, and I in my cap,
Had just settled down for a long winter's nap,
When out on the lawn there arose such a clatter,
I sprang from the bed to see what was the matter,
Away to the window I flew like a flash,
Tore open the shutters and threw up the sash,
It was Timmy the sugar daddy,
Tossing infinite dollars at Fannie and Freddie,
I wailed, "this is so unfair",
To which Timmy scoffed, "like I care",
I will be gone before your kids are old enough to despair
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