Secondary Market/Investors
Freddie Draws $6.1 Billion to Cover Liabilities
By
DIANA GOLOBAY
July 2, 2009 10:47 AM CST
Mortgage giant Freddie Mac (FRE: 1.23 -1.60%) this week drew $6.1bn from the preferred stock purchase agreement between the company and the US Treasury Department.
The Treasury on Tuesday distributed the funds, which were requested by Freddie’s conservator, the Federal Housing Finance Agency, in a May 12 Securities and Exchange Commission (SEC) filing.
FHFA submitted the request on Freddie’s behalf after the government-sponsored enterprise reported in its first quarter earnings statement that its liabilities exceeded its assets by $6.01bn as of March 31.
The $6.1bn from the Treasury covers that disparity. After the draw, the remaining amount under Freddie’s funding agreement with the Treasury is $149.3bn, according to an SEC filing Wednesday.
Write to Diana Golobay.
Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.
Print This Article
recent stories by department
Origination/Lending
Secondary Market/Investors
Servicing/Default
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Dec 09 -- 2009 Dec 10
RMBS: Assessing Value and Risk
This two-day course in New York City will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
2010 Jan 13 -- 2010 Jan 14
2010 Collection Technology Summit
The Collection Technology Summit is the first industry event to focus solely on collections and its associated technologies and continues to draw top executives from the nation's most prominent institutions. The Collection Technology Summit, where innovation happens. For more information, visit www.collectiontechnology.net
