Freddie Reports $14B in 2010 Losses
The Hill reports:
Freddie Mac lost $14 billion in 2010, the troubled mortgage giant reported Thursday.
The government-sponsored enterprise (GSE) reported a loss of $113 million in the fourth quarter of the year alone.
However, both those numbers are actually improvements from previous figures. Freddie lost $21.6 billion 2009, and lost $2.5 billion in the third quarter of 2010.
Those losses left Freddie with a net worth deficit of $401 million at the end of 2010. The Federal Housing Finance Agency, which oversees and runs Freddie and co-GSE Fannie Mae since the two come under federal conservatorship, will deal with that deficit by tapping the Treasury Department for $500 million.
However, that money will come out of the $1.6 billion dividend Freddie paid to the government in the fourth quarter. At the end of 2010, the government's net investment in Freddie totaled $53.7 billion.
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