WASHINGTON — Freddie Mac today submitted forms to the Securities and Exchange Commission indicating it may issue additional stock to raise more money and stave off the need for government assistance.
The government-sponsored mortgage buyer said it might sell as much as $10 billion in stock
By selling the stock to shareholders, Freddie Mac could avoid additional intervention in its operations that might take place if the government buys the stock. The Treasury Department is asking Congress for the authority to buy shares of Fannie Mae and Freddie Mac if those government sponsored enterprises are in need of additional capital. That request is part of the housing bill currently pending in Congress.
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Fannie and Freddie, which together own or guarantee about $5 trillion in mortgages, about half of all mortgages in the United States, have reported combined losses of $11 billion in nine months that ended on March 31.
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