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THURSDAY, NOVEMBER 26, 2009
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Freddie Seeks $31B in Aid After Posting Big Loss

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(AP) – Freddie Mac said today 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 US 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. Freddie's request for $30.8 billion in federal aid comes on top of $13.8 billion it received last year. The Treasury Department has pledged a total of $400 billion in aid for Freddie and Fannie Mae, which were seized by the government in September.

In this Sept. 25 photo, Freddie Mac Chief Executive Officer David Moffett testifies before a House panel.
In this Sept. 25 photo, Freddie Mac Chief Executive Officer David Moffett testifies before a House panel.   (AP Photo/Kevin Wolf, File)
A home under foreclosure in Antioch, Calif.
A home under foreclosure in Antioch, Calif.   (AP Photo/Paul Sakuma)
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We absorbed heavy financial losses last year. But we also provided vital liquidity to the strapped housing market. - Freddie Chief Executive David Moffett

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3 comments
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BackAgain
Mar 11, 09 5:22 PM CDT
Ya but people deserve a home right? NO you have to pay for it. Reply
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radnip
Mar 12, 09 4:17 AM CDT
Huge losses will keep happening until lending goes back to conservative standards: at least 20-25% down, including rolled costs, etc, plus verified income, etc. Bankers used to know this. How come they all went to hide in small, old-money banks? And yes, not everyone can own a home, especially when there aren't any savings to shore one over in case of income loss. Reply
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BackAgain
Mar 12, 09 5:29 AM CDT
Thank you and where is all the cry baby left on this subject-oh ya at home in a free Freddie home. Reply
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