Freddie Mac Seeks $6B In Aid After Steep Losses

Law360, New York (November 3, 2011, 4:10 PM EDT) -- Government-backed mortgage lender Freddie Mac has requested $6 billion in federal aid after reporting $4.4 billion in losses last quarter due to the slumping housing market and declining values of derivative investments, the lender announced Thursday.

Freddie Mac tallied $4.4 billion in losses for the third quarter of 2011, more than twice the deficit reported for the previous quarter, which ended June 30. The Federal Housing Finance Agency, which took control of the lender in 2008, said it needed $6 billion in aid to offset the...
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