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.

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