Freddie Mac says it will need $30.8 billion in government aid after record losses from deterioration in its loan portfolio.
Just this morning the government tapped Freddie Mac chairman John A. Koskinen to serve as an interim chief executive. Welcome to the job, John.
Freddie Mac is at the centre of much of Barack Obama’s home rescue plans. The company owns or guarantees over 20 per cent of U.S. home loans. It reported a fourth-quarter net loss of $23.9 billion, or $7.37 a share. The results pushed the value of Freddie’s assets below its liabilities. That’s a long way of saying it’s insolvent.
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