Wednesday, May 5, 2010

Freddie Mac asks for additional $10,000,000,000 bailout

Freddie Mac asks for additional $10,000,000,000 bailout
Wednesday, May 5th, 2010

Troubled US government-backed mortgage firm Freddie Mac on Wednesday asked for an additional 10.6 billion dollars from the Treasury Department to cover losses.

Announcing a 6.7 billion dollar loss in the first quarter, Freddie Mac said it would need the new funding by June 30 this year.

The Washington-based company has already received more than 50 billion dollars in taxpayers cash to cover losses from toxic assets.

It also warned that further demands would be on the way.

"Freddie Mac expects to request additional draws," it said in a statement.

"The size and timing of such draws will be determined by a variety of factors that could adversely affect the company's net worth."

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