Freddie Asks Fed for Another Bailout
Freddie Mac, which lost $3.5 billion in the third quarter and is looking for the federal government to bail it out one more time, says it will be a “considerable time” before the housing market recovers.

CEO Charles Haldeman said, “As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties.”

Supporters of Freddie and its sister Fannie Mae have asked the Treasury Department to reconsider the terms of its dealings with the companies, particularly the 10 percent dividend they must pay in exchange for federal funds they receive as payment for preferred shares.

The NATIONAL ASSOCIATION OF REALTORS® supports the move, saying, "Eliminating a punitive dividend is a step that should be taken now, regardless of how the GSEs may be restructured in the coming years.”

Source: The Street.com, Colin Barr (10/03/2010)