Freddie Mac Announces $2 Billion Loss in Third Quarter
Atlanta, GA 11/20/2007 04:19 PM GMT (FINDITT)
Freddie Mac set aside $1.2 billion in the third quarter to account for bad home loans and posted a $2 billion loss Tuesday, prompting the nation's second largest guarantor of home mortgages to seek additional sources of capital.
Freddie Mac said Tuesday it had hired Goldman Sachs and Lehman Brothers to help it consider “very near-term capital raising alternatives.”
Losses widened from $715 million last year during the same period, sending shares tumbling nearly 13 percent, or $4.70 to $32.80 in pre-market trading.
Freddie Mac said it made the provision for credit losses in the July-September period because of defaults on home loans, which "reflects the significant deterioration of mortgage credit."
Freddie Mac and Fannie Mae have taken up much of the slack as private investors have run from the mortgage market. Tighter lending will make it harder for people to get loans, which in turn will make it even more challenging to sell a home.
Shares of Freddie Mac were down 22 percent in early trading Tuesday.
For more financial news, please check out http://news.finditt.com/NewsList.aspx?cat=8&wcat=10
befound@finditt.com
Email Article to a friend
|
View Profile
Visit Blogs
|
NEWS ALERTS
Receive alerts for
Finditt Finance
to your inbox.
Sign up for TransWorldNews Alerts
TransWorldNews, Inc. and its affiliate sites disclaim all liability for information and content provided by clients and appearing within their news and press releases.
