Freddie Mac Post $4.3 Billion Loss
WASHINGTON – Freddie Mac on Wednesday reported another huge loss for its third quarter, of $4.3 billion, necessitating it to ask for an additional $100 billion in government bailout funds.
The third quarter losses make a total of $18 billion in red ink accrued by the secondary mortgage market giant so far in 2010.
The third quarter loss, however, is down from a $6.7 billion third quarter loss for 2009. Republicans in Congress, who won control of the House of Representatives Tuesday, have vowed to make a resolution of the two mortgage giants one of their top priorities in the next Congress.
Freddie reported that loan losses rose to $121 billion in the third quarter, from $118.7 billion for the second quarter, and $103.4 billion as of year-end 2009.
The additional bailout funds bring to almost $260 billion the government assistance that will be required for Freddie Mac and its sister government sponsored enterprise Fannie Mae.