Freddie Mac said yesterday that a $23.9bn fourth-quarter loss would require it to draw down $30.8bn of capital from the US Treasury, but warned that it would face difficulties paying the government back.
The results came as Freddie Mac’s chief executive, David Moffett, resigned after just six months in the job.
The company named John Koskinen, its chairman, as interim chief executive and is seeking a permanent replacement.
The latest capital infusion will bring the government’s stake in Freddie Mac to $45.6bn of senior preferred stock, which pays a dividend of 10% a year. Freddie said its ability to pay the government was limited, noting that it would owe $4.6bn in dividends annually – more than it has earned in most previous years.
Financial Times, New York Times