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Wednesday, May 05, 2010

Freddie Mac: Q1 Net Loss $6.7 billion, Asks for $10.6 billion

by Calculated Risk on 5/05/2010 05:40:00 PM

"[A]s we have noted for many months now, housing in America remains fragile with historically high delinquency and foreclosure levels, and high unemployment among the key risks."
Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr.

Press Release: Freddie Mac Reports First Quarter 2010 Financial Results

First quarter 2010 net loss was $6.7 billion. ...

Net worth deficit was $10.5 billion at March 31, 2010, driven primarily by a significant adverse impact due to the change in accounting principles. ...

The Federal Housing Finance Agency (FHFA), as Conservator, will submit a request on the company’s behalf to Treasury for a draw of $10.6 billion under the Senior Preferred Stock Purchase Agreement (Purchase Agreement).
emphasis added
The first quarter loss in 2009 was $9.97 billion and the Q4 2009 loss was $6.5 billion. The losses keep coming, but last quarter Haldeman warned about "a potential large wave of foreclosures", so it appears he is a little more optimistic.