Freddie Mac narrows 4Q loss; to seek more government aid
Freddie Mac reported a $1.7 billion loss for the fourth quarter ended Dec. 31 and a $19.7 billion loss for the entire 2010 fiscal year on Thursday. The GSE also said it would be asking the government for more aid. On a per-share basis, the company's loss amounts to 52 cents per share in the fourth quarter and $1.25 per share for fiscal year 2010. The company's fourth-quarter loss is narrower than the $4.1 billion loss recorded in the third quarter. The GSE said as of Dec. 31, it had a net worth deficit of $401 million and will be asking its conservator, the Federal Housing Finance Agency to request a $500 million draw on the Treasury to help the GSE out. The GSE blamed its deficit on several factors — the main being a required $1.6 billion dividend payment to the Treasury. These expenses caused the GSE's net worth deficit to exceed total income, Freddie said Thursday. Write to Kerri Panchuk.