Wednesday, November 3, 2010

Freddie Mac posts $4.1B loss for Q3

Government-controlled mortgage buyer Freddie Mac on Wednesday posted a narrower loss of $4.1 billon in the third quarter as it asked for an additional $100 million in federal aid - substantially less than the $1.8 billion it sought in the second quarter.

Freddie Mac’s loss attributable to common stockholders for the July-September quarter works out to $1.25 a share. It takes into account $1.6 billion in dividend payments to the government. It compares with a loss of $6.7 billion, or $2.06 a share, in the third quarter of 2009.

The government rescued McLean, Virginia-based Freddie Mac and sibling company Fannie Mae nearly two years ago to cover their losses on soured mortgage loans, and it estimates the bailouts will cost taxpayers up to $259 billion.

That’s nearly twice the $133 billion Fannie and Freddie are in line to receive from taxpayers so far and would make theirs the costliest bailout of the financial crisis.

Read More: MBJ

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