Freddie Mac May Raise $6 Billion to Stem Capital Drop |
| Bloomberg - Nov 21, 2007 |
Freddie Mac, the second-largest U.S. mortgage-finance company, may need to raise as much as $6 billion to bolster its capital amid the worst housing slump in at least 16 years.
The government-chartered company yesterday said it would seek more reserves in a ``large transaction,'' after reporting its biggest quarterly loss. The amount may be $5.5 billion to $6 billion, according to Fox-Pitt Kelton analyst Howard Shapiro. Friedman Billings Ramsey analyst Paul Miller and Gary Gordon, an analyst at Portales Partners LLC in New York, predict $5 billion.
``It's not going to be a small number,'' said Gordon, who is advising investors to refrain from buying more of the company's shares.
Read Full Article from Bloomberg
- Posted: 2007-11-21 10:41:39
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