Freddie Mac To Ask For Billions More In Bailout Funds

McLEAN, Va. — Mortgage finance company Freddie Mac said Friday it will need an additional $30 billion to $35 billion in government aid as it copes with losses on loans the company backed during the U.S. housing bubble.

The company disclosed in a Securities and Exchange Commission filing late Friday that it expects its government regulator, the Federal Housing Finance Agency, to make the request from the Treasury Department.

It comes on top of the $13.8 billion the company received last year after it was seized by the government. Sibling company Fannie Mae has yet to request any such aid but has warned it may need to do so.

Federal regulators seized control of both companies in September after they faced mounting losses from the housing market's bust. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company.

The actual amount of the request will reflect the amount of losses the company sustained in the fourth quarter, Freddie Mac said in the filing.

The request suggests that losses are continuing for Freddie Mac, which posted a loss of $25.3 billion for the third quarter. In that report, Freddie Mac said that rising unemployment rates, tightening credit and deteriorating economic conditions caused the number of delinquent loans to rise, including prime loans made to borrowers with strong credit.

Meanwhile, Freddie Mac also disclosed that it settled a dispute with JP Morgan Chase & Co., which will now collect payments on mortgages previously handled by failed thrift Washington Mutual. The agreement settles a dispute with JPMorgan, which purchased Washington Mutual in late September for $1.9 billion.

Comments

[solarian]

forget it

[renisans]

F#@! 'em. Let them fail. I'll write to my senators and congresswoman about this.

And let's get an explanation about what they did with the initial bailout, but in the end, let them rot in hell.

[JerryRN]

Please take a look at the suit I filed in federal court in Indiana on 1-20-2009 I have asked the court to stop this until we are told what happened to the first 350B. I am just a father and nurse not a lawyer so I need others to take a look and to tell others about what I am doing. Please take a look at the suit a copy on my web site at www.malenursemagazine.com. All the information about me is there on my web site. If you do not trust the link google LUCAS v Congress then look me up.
I do not think I will win but some one had to do something. I have a youtube site at jerryERRN with even more information so please look into it and tell others.

Jerry R Lucas RN

[bikerdude]

Just say no.

[themodernleader]

When our credit is almost lost, the President and Congress will be forced to ask this Question, "What is more important? The preservation of the American Dollar or the preservation of the Wall Street House of Swindlers?

[slowhand0728]

Oh and give it a couple of month GM and Chyrsler will be back with their tin cups as well.

[horsey]

Thanks to Bush.

[DubiousVoter]

After giving the banks $BILLIONS of OUR taxes, shouldn't we get something for it?

I need a bailout too! I made a poor choice when I borrowed $50,000 dollars for my education in molecular biology, since I still only earn $60,000/yr after 10 years in my field. I graduated at the top of my class from UCSD, magna cum laude, phi beta kappa, research scholar and author of 8 peer-reviewed publications before I graduated. I've worked diligently for the public good over the past 10 years, yet living in California, my salary barely covers my basics. I still live in a studio apartment, drive a $20,000 car from 2004 and have a modest lifestyle.

The bank that holds my student loan recently received $20 Billion from the U.S. Treasury, but I still don't get a break. The loan is at 7.8% (non-negotiable) or $500/month. The bank gets a huge chunk of my salary and ALL of my taxes, so WHERE IS MY BAILOUT! The money I borrowed from the Fed went to good use.

So, if the Fed would buy back student loans and lower the interest rate to 0.25% (like the banks pay) that would put a lot of money back into the economy and a lot more people back to work in retail and manufacturing. Instead, it's all going into a giant black hole!

[bikerdude]

You are on to something here, Dub....Let them scale back their salaries, bonuses, etc., cut interest rates on their loans and try to make the business work. If they can't do it, then we will bring in people who can.

[JerryRN]

Please take a look at the suit I filed in federal court in Indiana on 1-20-2009 I have asked the court to stop this until we are told what happened to the first 350B. I am just a father and nurse not a lawyer so I need others to take a look and to tell others about what I am doing. Please take a look at the suit a copy on my web site at www.malenursemagazine.com. All the information about me is there on my web site. If you do not trust the link google LUCAS v Congress then look me up.
I do not think I will win but some one had to do something. I have a youtube site at jerryERRN with even more information so please look into it and tell others.

Jerry R Lucas RN

[MetryJen]

You've got a really good point, Dubious, and one I keep trying to make myself (although for me it's student loans AND a predatory mortgage) - the basis of this crisis is that PEOPLE ARE BROKE. They're drowning in debt and don't have money to buy things, which causes foreclosures, credit defaults, then layoffs, etc. If they refinance all bad loans for individuals you're putting more money in the pockets of average people, the loans are more likely to be paid back and the gov. makes a tidy profit on the *reasonable* interest charged. But slapping Americans around with usurious interest payments will keep us from ever repairing the crisis.

Here's hoping they're listening.

[Maschine]

Whoops, the cup is dry already.

I agree, let them all fail. get this crap out and over with. Shut the markets down. Take a 21st Century breather.

in a global economy which has strong implications for National security, a strong set of regulations should be in place.

One i would like to see is oil being taken off the markets. You can only trade it if you take delivery of it. Further, a set price should implemented which affords eveyone a decent and agreed upon profit. And every barrel is allocated based on a set demand.

For instance, all countries know how much oil they require for the next year. They put that demand into the pipeline and they get charged for it . If they save some, they can trade it off with another country. If they require more, they can get form the supplier for the World agreed upon price.

There is no place for speculators when you are talking about national Security.

[POLINUT]

Let them ALL fail. Bring the P-A-I-N! Let's get it over with and rebuild our economy. NO MORE BAILOUTS!

[bushisanAhole]

I was a mortgage broker for 14 years. I did some subprime, which did just fine when values were going up. Then the lenders started pushing option ARMS, which I refused to do, knowing full well it was setting the borrower up for disaster. Then Fannie Mae started buying No Income No Asset loans, with no verification of income, which typically were considered subprime loans. That's when I got out of the business and sold all my real estate, and got a government job. The bad loans on the books of Fannie and Freddie are just started to go bad. There is at least one or two more waves of foreclosures coming. Throwing good money after bad is what will take us from a recession to a Depression. All this money is going down the toilet, just like when you give a junkie a fix, they will be right back for more. There will be tens of trillions of dollars lost by banks, this is just the tip of the iceberg. Let them fail, new banks will start up and be more responsible.

[DubiousVoter]

Here! Here!

The general public has no concept of what is to come. It can be summed-up in a word; Iceland.

Get ready for 2009 -- it's gonna be a disaster!

[bikerdude]

I don't see any other solution. The "smartest guys in the room" who work at these places have no solution but to rattle their little tin cups. Let them fail. Keep track of the leaders, so when they apply for other banking jobs we can just say no...

[atlantajoe]

Maxine waters and Barney Frank say nothing is wrong with fannie, why do they need money ?

[odan]

Yup, and here is the link to prove it.

http://www.youtube.com/watch?v=y4A0RuXhnQA

[bikerdude]

Do you consider Barney and Maxie scions of the banking industry? I'm a progressive democrat, but I do understand the shortcomings of these politicians.

[LeftLeaner]

No More Bailout!!!!

We Americans should ALL refuse to pay our taxes this April in protest of what they have already done with OUR taxpayer dollars.

It's OUTRAGEOUS.

What ever happened to taxation without representation.

I don't hear any taxpayers FOR bailing out these inefficient and corrupt institutions!!!

[JerryRN]

Please take a look at the suit I filed in federal court in Indiana on 1-20-2009 I have asked the court to stop this until we are told what happened to the first 350B. I am just a father and nurse not a lawyer so I need others to take a look and to tell others about what I am doing. Please take a look at the suit a copy on my web site at www.malenursemagazine.com. All the information about me is there on my web site. If you do not trust the link google LUCAS v Congress then look me up.
I do not think I will win but some one had to do something. I have a youtube site at jerryERRN with even more information so please look into it and tell others.

Jerry R Lucas RN

[MetryJen]

Stop spamming. All you're doing is pissing everyone off.

[odan]

This is all you need to know about why fannie and freddie collapsed.


http://www.youtube.com/watch?v=y4A0RuXhnQA

[bikerdude]

The first comment after the little video propaganda says it all....

"Late 2004!!!!!" If only there had been a REPUBLICAN majority to force those regulations through and save our economy from imminent disaster!!!!!!

Oh wait, there was....

[slowhand0728]

This is just stupidity, more money to be burned...A­t the rate these guys are going we will be doing this forever! Was against the first bail-out and the Auto Bail-out and against the NEW stimulous. We can not just keep pouring money into this, let it shake out. Let the companies that failed fail, and we will rebuild again. They will never stop and forget about LEARN anything, just keep coming back for more. So true just like JUNKIES!

[nirek]

NO more bailout for BANKING TYPES ! Where did all the $ go? Try Obama's stim. plan and get the people to work and fix our infrastructure !
I went to refi. my mortgage and the first thing I was told was they would sell my mortgage! I said forget it , I want to be part of the solution NOT part of the problem!

[amaycatbaker]

Accounting PLEASE!

[NYC123]

This bailout strategy is just creating more debt and making all these large companies ask for hand outs. We've become a welfare economy! A real slippery slope!

[horsey]

Let's all thank george bush for the welfare economy he created.

ty george..

[atlantajoe]

LBJ gave us the welfare ecomomy. This is what dems want, people with their hand out wanting gov to put something in it.