May 5th, 2010
05:24 PM ET

Freddie Mac to ask for $10.6 billion in additional federal aid

Mortgage giant Freddie Mac announced Wednesday that it will seek $10.6 billion in additional federal aid, according to a statement on the company's website.

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Filed under: Economy
soundoff (125 Responses)
  1. Jenn

    This is utterly disgusting! They used their last bailout to give their executives bonuses while the rest of the American public struggled to feed their families! If they used this money to help those people in need to modify their home loans then I'd be more open to this but they are turning almost everyone down. Come on Congress don't give it to them, give it to the people who really need this, the hard working American people.

    May 5, 2010 at 7:42 pm | Report abuse |
  2. norm62

    I'm from Canada, and I have to say, I just can't take seriously any company with a name like "Freddie Mac" [or, "Fannie Mae"]. They sound like a couple of fast-food chains, or something. As for the additional loans... wow, Freddie, you've got some nerve there. The moment all this crap hit the fan, all the companies getting monies from the government [hell, *all* the governments in the world] should have immediately halted all salaries and bonuses to their respective "big wigs", until all this monetary nonsense was sorted out. Earn your money, big wigs! And no, I don't think Freddie should get a dime.

    May 5, 2010 at 7:42 pm | Report abuse |
  3. lovely

    They need to get rid of the fat paychecks given to Lazy people working there. Trim the excess fat , make the rest to work . It is a place for Government Welfare with hefty bonus for bogus crap.

    May 5, 2010 at 7:43 pm | Report abuse |
  4. Jack W

    How 'bout NO, ya f-ing bastages!

    May 5, 2010 at 7:44 pm | Report abuse |
  5. Josh M

    I'm a liberal, and I -DON'T- agree with anymore bailouts. They already got some of our money, and they paid out bonuses to their executives. If we don't learn from this, we are going to keep repeating it.

    May 5, 2010 at 7:44 pm | Report abuse |
  6. a

    Tell them to go get it from the CEOs, Goldman Sacs,AIG,Citibank and other bankers who worked with them. We have already paid more than our share. Its now their turn to payup. Why can the govt. go after these crooks get the money back. Why does it take so much time?

    May 5, 2010 at 7:44 pm | Report abuse |
  7. Angry Taxpayer

    Shut them down. No more bailouts. Cut them off. Prosecute them. Not with my money. Can you hear us Congress?????

    May 5, 2010 at 7:47 pm | Report abuse |
  8. Jack W

    Too Big To Fail? So what, exactly, incents these jacka**es to make smart business decisions and act responsibly, morally, ethically, etc...? Anyone? Bueler?

    May 5, 2010 at 7:48 pm | Report abuse |
  9. Joli

    Senator Senator Chris Dodd used to lobby in Freddiemac and how same people making the rules . Its just Joke

    May 5, 2010 at 7:48 pm | Report abuse |
  10. lydia

    for every $10B the banks get, the unemployment should get $500B.

    May 5, 2010 at 7:48 pm | Report abuse |
  11. Mingles

    Why doesn't the Congress max the pay of the CEOs to 500K like they have the CEOs of General Motors and Chrysler, and nix the use of bailout money for bonuses. I mean is this not absurb to reward people for underperforming?!

    May 5, 2010 at 7:58 pm | Report abuse |
  12. sbtim

    man, this is like that guy you know who keeps hitting you up for money. First he asks for $200, then you give it to him, and he never pays you back, then he asks for $100 and says "that's half of what I asked last time!"

    Let them go into bankruptcy.

    May 5, 2010 at 7:58 pm | Report abuse |
  13. Q

    That's the problem though... The people at the top are making money even if the company is failing and needs bailout money.. And the people at the top are in charge of what they pay themselves..

    May 5, 2010 at 8:00 pm | Report abuse |
  14. joe

    when i needed freddie mac to bail me in 2008 when i lost my home (by them) they come out with excuses to buy time. why cant the government do that...

    May 5, 2010 at 8:01 pm | Report abuse |
  15. John

    I am sorrym but you all don't get it. America already owns Freddie and Fannie! So if they go down, the $10.6 billion would magnify into the trillions. Do any of you actually know how many mortgages Freddie and Fannie have? By my last estimate, about 60 million loans in the tens of trillioans of dollars.

    They are the secondary market and the entire mortgage industry depends on them. And by the way, no one has answered the question as to why the housing crisis occurred. The answer is over valued properties!

    I do not care if you are a sub-prime loan or A paper, if your house is appraised for far more than it is worth, you are underwater from the get go. Heck, Las Vegas properties were appreciating at over 50% a year! Does anyone think that is real value?

    So the average homeowner for 50 years has relied on a steady but fair appreiciation of their property. When their daughter got married, kids went to college or they had other financial problems, they would either refinance or get a second trust. But since the homes were over valued at the time of origination, there is no equity to afford them these options any more.

    It is not strict credit guidelines that is the major problem, it is the appraisal process that over valued properties and let lenders make loans they never should have.

    Again, we already own Freddie and Fannie. And although it is easy to be mad about it, let them fail and you will make the Great Depression look like a small recession. I have been in the business for 20 years, worked for both companies and was a foreclosure manager. Closing them down is not the answer, as this is a grass roots issues. We need to start with the real esttate agents, the appriasers and the loan officers. Rewrite the entire way the process has been done and then, and only then, can we attack the upper structure of Freddie and Fannie.

    If they fail, I promise you you will live to regret it as no one in the secondary market can fill their shoes. It's called Liquidity in the Capital Markets people. I know you are mad, but do some homework and try to take the emotion out of the equation and see things as they really are.

    Good luck to all!

    May 5, 2010 at 8:05 pm | Report abuse |
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