Pursuits
Freddie Mac Profit Shows Taxpayer Bailout Risk Is More Remote
- Freddie Mac had second-quarter profit of $993 million
- Company will send U.S. Treasury $933 million in dividends
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Freddie Mac swung to a profit in the first quarter and says it’s taking steps to avoid another taxpayer bailout in the near term.
The company said on Tuesday it made a $993 million profit in the second quarter thanks in part to steps it took to soften the impact of an accounting quirk. That wrinkle had caused losses in two of the past four quarters and raised the specter of another taxpayer bailout even as the company’s underlying business continued to strengthen.