"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Wednesday, November 3, 2010

Freddie Mac costs Grandchildren Another $4.1 Billion

CEO Charles E. Halderman, Jr:
"We have helped to keep the housing finance and broader capital markets functioning smoothly, and since the beginning of 2010 have made it possible for 1.2 million American families to take advantage of historically low interest rates to buy or refinance a home."
(all for the low taxpayer investment of $63.2 billion and our
12th quarterly loss in the prior 13 quarters...sorry about that kids)

11/3/10
McLean, VA – Freddie Mac (OTC:FMCC) today reported a net loss of $2.5 billion for the quarter ended September 30, 2010, compared to a net loss of $4.7 billion for the quarter ended June 30, 2010. After the dividend payment of $1.6 billion on its senior preferred stock to the U.S. Department of the Treasury (Treasury), Freddie Mac reported a net loss attributable to common stockholders of $4.1 billion, or $1.25 per diluted common share, for the third quarter of 2010, compared to a net loss attributable to common stockholders of $6.0 billion, or $1.85 per diluted common share, for the second quarter of 2010.

The company had a net worth deficit of $58 million at September 30, 2010, compared to a net worth deficit of $1.7 billion at June 30, 2010. The deficit in net worth for the third quarter resulted from several contributing factors, including a dividend payment of $1.6 billion to Treasury, which exceeded total comprehensive income of $1.4 billion. To eliminate the third quarter net worth deficit, the Federal Housing Finance Agency (FHFA), as Conservator, will submit a request on the company's behalf to Treasury for a draw of $100 million under the Senior Preferred Stock Purchase Agreement (Purchase Agreement).

"As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties," Haldeman said. "We believe that it will be a considerable time until the housing market has a sustained recovery." Freddie "Krueger" Mac Report








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