Freddie Mac asks for new 10.6 billion dollar bailout

[FarCenter]

AFP - 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.

<SNIP>http://www.france24.com/en/20100505-freddie-mac-asks-new-106-billion-dollar-bailout

[LakeSamish706]

1. Congress needs to hurry up and pass the bill that prohibits any more bailouts. n/t

[PM Martin]

2. No!

[BootinUp]

3. I thinks its time these idiots are shut down

and no, I don't understand fully the ramifications of that.

[FarCenter]

4. You can't really shut down Freddie and Fannie

Investors will not buy mortgage backed securities that are not backed by Fannie and Freddie, and therefore implicitly by the US Government.

Investors have no faith that they will be repaid by US borrowers, so new mortgages would become largely unavailable.

[taught_me_patience]

6. Freddie and Fannie are the dumping ground for MBS

They cannot be shut down. TARP was a distraction... the REAL "bailout" of the banks is through Fannie, Freddie, and the FED buying toxic assets from the banks at par value.

[Catshrink]

5. What could we do with $10 billion?

We could use that money to fully fund education and avoid the layoff of 300,000 school personnel, repair school buildings, and improve infrastructure. We could save the jobs of thousands of police officers and firefighters. We could repair bridges and water treatment facilities. We could build a few windmills. We could rescue thousands of homeowners from foreclosure.

Fuck Freddie Mac.