Thursday, February 28, 2008

Freddie Mac: $2.5 billion Loss, CEO "Extremely Cautious"

by Bill McBride on 2/28/2008 10:43:00 AM

From MarketWatch:

Housing downturn leads to Freddie Mac losses The weakened U.S. housing market took a toll on Freddie Mac's bottom line in the fourth quarter and for 2007 as a whole, the mortgage-finance giant said Thursday as it reported worse-than-expected financial results.

Richard Syron, Freddie Mac's chief executive, also said the company's "extremely cautious" as 2008 moves forward.

McLean, Va.-based Freddie posted a quarterly net loss of $2.5 billion ...
The company is "extremely cautious" just as everyone is calling for an expanded role in mortgage lending for Freddie and Fannie. I expect more visits to the confessional.