Freddie Mac narrowly avoids tapping Treasury for money

Published May 3, 2016 4:40pm ET



Freddie Mac narrowly avoided requiring a cash infusion from the Treasury in the first quarter of 2016, posting a loss of $200 million that was just short of what would have precipitated a draw from the Treasury.

The mortgage company, which has remained in the government’s management since late 2008, reported Tuesday that its net worth dropped to $1 billion as a result of its first-quarter losses. Under the terms of the government’s takeover, the Treasury would have stepped in to provide capital if Freddie’s net worth had dropped into negative territory.

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