Saturday, January 24, 2009
Freddie Muck (Mac): Just When You Think It Can't Get Any Worse....
Freddie filed some paperwork with the SEC yesterday, highlighting how poorly their business is going. Freddie Muck anticipates a need for a $30 billion - $35 billion capital injection in the near future.
The Muck also released a rundown of their portfolio and obligations that pretty much guarantee that the tax-payer is in trouble, big trouble:
$1.827 trillion in mortgage guarantees
$870 billion in debt
$3 trillion in mortgage and mortgage backed holdings
I have also read anecdotal stories about mislabeled loans and near fraudulent activity, but I can't confirm that. I would not be surprised though.
Posted by MK at 9:48 AM