Profits Plunge At FreddieMac
McLEAN, Va. - (09/01/05) -- Earnings plummeted more than 50% atFreddie Mac for the first half of the year, compared to last year,despite the ongoing mortgage boom, the company said yesterday, inits first financial report since the 2003 onset of its accountingscandal. Net income for the first six months was down from $4.1billion for the first six months in 2004, to just $1.6 billion forthe first half this year. First quarter net was $823 million, or$1.19 a share, compared to $1.26 billion, or $1.83 a share, for thefirst quarter last year; while second quarter net was $713 million,or $1.03 a share, down from $2.7 billion, or $3.92 a share, for thesame period last year. The main cause of the fall in earnings was adrop in net interest income from $4.8 billion for the first halflast year, to $3.1 billion for the same period this year. Also,non-interest income, such as earnings on investments, tumbled 90%,from $1.5 billion in the first six months last year, to just $157million this year.