Freddie Mac reports first quarterly profit in two years
- August 10, 2009
Mortgage giant Freddie Mac reported a second-quarter profit and said it won’t need any additional money from the U.S. Treasury for now.
The mortgage giant, under government conservatorship since last September, reported a profit of $768 million for the quarter, compared with an $821 million loss during the same period last year and a $9.9 billion loss during the first quarter. After the company paid a $1.1 billion dividend to the government for its preferred stock ownership, the company had a loss off 11 cents per share.
Freddie Mac said its net worth was $8.2 billion as of June 30.
“We are pleased that our financial results allowed us to finish the quarter with a positive net worth, meaning we will not need to request any additional financial support from the government at this time, said Freddie Mac’s interim CEO John Koskinen. “However, we recognize that our financial results for the quarter include one-time accounting adjustments and mark-to-market gains that are subject to change in future periods.”
The company said it has seen an uptick in home sales, but the housing market is still suffering because of foreclosures, increasing unemployment, tight lending, and reluctance of buyers to enter the market.