November 20, 2007

Freddie Mac loses $2B, seeks new capital (AP)

Richard Syron, chairman and CEO of Freddie Mac, talks about the sub-prime lending crisis and its effect on the housing market in Boston in this April 27, 2007 file photo.  Freddie Mac set aside $1.2 billion in the third quarter to account for bad home loans and posted a $2 billion loss Tuesday, Nov. 20, 2007, prompting the nation's second-largest guarantor of home mortgages to seek additional sources of capital. (AP Photo/Stephan Savoia, file)AP – The mortgage crisis intensified Tuesday as Freddie Mac, the nation’s No. 2 buyer and guarantor of home loans, posted its largest quarterly loss ever and warned that it may need to curtail its business unless it can raise fresh capital.

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