WASHINGTON Freddie Mac reported a $5 billion second quarter net yesterday, up from $3 billion for the same quarter last year, and its seventh quarterly profit in a row.
Freddie said the gain was due largely to increased profits from investments made to hedge against rising interest rates. That helped offset losses on mortgages during the quarter.
Freddie will pay a dividend of $4.4 billion to the U.S. Treasury next month and is requesting no additional aid.
The GSE and its sister secondary market giant, Fannie Mae, have received $187 billion in taxpayer aid since they were taken over by the government in September 2008.
Freddie Mac is required to pay everything above $3 billion to the Treasury in return for taxpayer aid under existing bailout terms. The two companies have paid nearly $132 billion in dividend payments.
