print article Print     e-mail article E-mail
Published March 12, 2009, 08:48 AM

Freddie Mac seeks $30.8 billion in aid

Freddie Mac said Wednesday it will ask the government for nearly $31 billion in additional aid after posting a gargantuan loss of more than $50 billion last year as the U.S. housing market worsened. The mortgage finance company posted a loss of $23.9 billion, or $7.37 per share, in the fourth quarter of 2008. That compares with a loss of $2.5 billion, or $3.97 a share, in the year-ago period.

WASHINGTON (AP) — Freddie Mac said Wednesday it will ask the government for nearly $31 billion in additional aid after posting a gargantuan loss of more than $50 billion last year as the U.S. housing market worsened.

The mortgage finance company posted a loss of $23.9 billion, or $7.37 per share, in the fourth quarter of 2008. That compares with a loss of $2.5 billion, or $3.97 a share, in the year-ago period.

The recent loss was driven by $13.2 billion in hedged trades, $7.2 billion in credit losses from the declining housing market conditions and $7.5 billion in writedowns of the value of its mortgage-backed securities. The company also took a charge of $8.3 billion for now-worthless tax credits.

Tags: , , , , , 

More from around the web