Freddie Mac Won't Need Taxpayer Help After All

Posted To: MND NewsWire

Despite speculation that it might require a Treasury draw after its first quarter financial loss, Freddie Mac reported on Tuesday it had net income of $1.0 billion in the second quarter of 2016 and Comprehensive Income of $1.1 billion. The company said its second quarter results were significantly less affected by market-related items than were results for the first quarter of 2016. The company lost $354 million net and a $200 million comprehensive in the first quarter, the first time in four years it had failed to show a profit. While it did not pay a dividend to the U.S. Treasury for the quarter it also did not require a draw. Based on the profit in the most recent quarter Freddie Mac it will pay a dividend of $933 million to the U.S. Treasury. Under the terms of the Senior Preferred Stock...(read more)

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