Sunk by Massive 3rd Quarter Writedowns, Freddie Mac Has to Take Treasury Lifeline
November 20, 2008
The U.S. Treasury is expected to pump $13.8 billion into Freddie Mac after the government-sponsored enterprise reported a huge $25.3 billion loss during the third quarter that drove shareholder equity into the red. Fannie Mae so far has managed to stay afloat despite a huge $29.0 billion loss reported earlier, but observers question how much government support the two GSEs will need in...