Freddie Mac Requests $19M in Aid

Freddie requested $19M from the government after a first quarter loss in 2012. The government controlled giant received $7.6 billion in aid for 2011 and $13 billion dollars in aid for 2010.

 

In a year over year comparison, Freddie’s net loss to it’s common stockholders was $1.2 billion which equals about $0.32 a share, compared to 2011’s first quarter net loss of $929 million which is equal to $0.29 a share.

 

In 2008 the government rescued both Freddie Mac and Fannie Mae when major losses on less that stable mortgages threatened to destroy them. About $170 billion dollars of tax payer money has been spent to rescue the two companies, and is the most expensive bailout from the 2008 financial crisis. It is estimated $200 billion more could be needed to support the mortgage giants through 2014, after the 10% dividends on any government money they receive are subtracted.

 

On a positive note, the $19 million is the smallest request it has ever made when requesting  funds and has paid more in dividends to the government then it has taken in aid from them over the last 5 months.

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