Freddie Mac reports $821 million loss as it cuts dividend By Steve Goldstein Last update: 6:17 a.m. EDT Aug. 6, 2008 LONDON (MarketWatch) -- Freddie Mac (FRE:Freddie Mac News, chart, profile, more Last: 8.04+0.52+6.91% 4:01pm 08/05/2008 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: FRE 8.04, +0.52, +6.9%) said it swung to a second-quarter loss of $821 million, or $1.63 a share, after taking $2.5 billion in provisions for credit losses. Revenue fell to $1.69 billion from $2.34 billion. Analysts polled by FactSet Research had expected a loss of 38 cents a share. The mortgage giant is going to cut its third-quarter dividend to 5 cents a share or less from 25 cents a share and pay the full preferred dividend. In addition, the company continues to review and consider other alternatives for managing its capital including issuing equity in amounts that could be substantial, reducing or rebalancing risk, slowing purchases into its credit guarantee portfolio, and limiting the growth or reducing the size of its retained portfolio. Estimated regulatory core capital was $37.1 billion at June 30, which represented an estimated $8.4 billion in excess of the company's statutory minimum capital requirement, Freddie Mac said.
breaking news, the SEC is investigating news organizations for supporting unpatriotic sellers how dare they report facts when we were doing so well
agree- it is a pretty strong showing, but the question is what kind of bs will the govt manufacture to compensate for this before the elections.
Why are they still paying a dividend at all? I suppose they will limit executive bonuses to under a hundred million, in order to "tighten the belt" Your tax dollars at work!
Agree, SEC should crack down on these fact mongers. There is a risk of a distortion of the official distortion of the truth.
Hasn't FRE done enough for its shareholders considering if a gov't bailout does occur, shareholders may actually get some $ for their shares. AND, now they will be getting a full dividend even after the company posts a sick earnings loss. it just seems backassward to me, am I wrong?
Now your thinking, the fed and the government will have things so screwed up my meddling in the markets, just wait and see. Free market hahaha what a joke.
Somebody impotant (i.e. a member of your New Aristocracy) probably holds FRE shares. As for the people, let them eat cake.