Economics
Freddie Mac Won't Need Treasury Aid After Third-Quarter Loss
- Bottom line hit by accounting for hedges on interest-rate risk
- FHFA's Watt points to increasing likelihood of future draws
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Freddie Mac moved closer to needing another dose of U.S. Treasury Department aid after reporting its first quarterly loss since 2011 stemming mostly from accounting for hedges against interest-rate risk.
The company, which has operated under federal conservatorship since it was seized along with rival Fannie Mae in 2008, had positive net worth of $1.3 billion after a half-billion dollar loss for the third quarter, according to a statement released Tuesday. That means it won’t need to add to the $71.3 billion in aid it has received since the financial crisis or the $96.5 billion it has sent to Treasury after regaining profitability in 2012.