Freddie Mac, one of the big players in the US mortgage market, on Wednesday posted its fourth straight quarterly loss as it braced for a prolonged housing sector slump by setting aside twice as much money for bad loans and cutting its dividend by at least 80 per cent.
The worse-than-expected results came just three weeks after the Treasury orchestrated a Congressional rescue plan to prop up the US No 2 provider of residential mortgage funding and its rival Fannie Mae.
Freddie Mac's chief financial officer Buddy Piszel reiterated that the company has adequate capital, and said it can wait for 'choppy' market conditions to improve before raising capital, which could exceed US$5.5 billion.
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