Freddie asks Treasury for $30.8 bln after big loss
MarketWatch writes Freddie asks Treasury for $30.8 bln after big loss:
(…)
Treasury had already injected almost $15 billion into Freddie last year, in return for senior preferred stock in the mortgage giant. After the latest investment, the government’s preferred equity stake will be $45.6 billion, the company said.Despite huge losses, the government is still pumping billions of dollars into Fannie and Freddie, because they’re crucial to the housing market. Most mortgages are either purchased or guaranteed by these companies and the Treasury and Federal Reserve have promised continued support to try to keep money flowing and halt the real estate slump.
The Federal Government holds the taxpayer accountable for a total preferred equity stake of $45.6 billion while the company’s common equity is worth $270 million. All this money is going down a huge money hole. ” Treasury and Federal Reserve have promised continued support to try to keep money flowing and halt the real estate slump” – To hell with their endless assurances and promises. None of their policies will end the real estate slump. It is here and now and won’t go away for a long long time, thanks to precisely these interventions.
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Related posts:
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- Treasury Scraps Limits for Fannie/Freddie Funding – How the US Government Created, Continued, and Perpetuated the Crisis
- Fannie Mae – Q2 Loss of $14.8 Billion – Asks for Another $10.6 Billion From Taxpayers
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