Freddie Mac Back With Hand out

Freddie Mac gets $6.1B from Treasury
Wednesday, July 1, 2009, 8:08am PDT
Silicon Valley / San Jose Business Journal

Mortgage giant Freddie Mac received $6.1 billion from the Treasury Department Tuesday to cover its first quarter shortfall, the company reported in a securities filing Wednesday.

The Treasury Department funds are part of the $200 billion the agency pledged last year to back McLean-based Freddie Mac (NYSE: FRE). The company told its regulator May 12 that its first quarter liabilities were more than $6 billion greater than its assets and that it would need to draw on the funds.

Freddie Mac, and its government sponsored sibling Fannie Mae, were put under federal conservatorship in September.

Freddie has thus far drawn on $50.7 billion from the Treasury. Fannie Mae has drawn $34.2 billion.