Freddie is no Fannie when it comes to earnings

Updated

Freddie Mac (FRE) dodged the fate of its mortgage finance stablemate Fannie Mae (FNM) which lost $14.8 billion in the last quarter and said it would need $10.7 billion in immediate federal aid.

In the second quarter, the financial firm had net income of 2009 was $768 million. After the dividend payment of $1.1 billion to the Treasury on its senior preferred stock, net loss per diluted common share was $.11 for the quarter. The even better news was that Freddie Mac's net worth at the end of the period was $8.2 billion. That allowed the company to state in its earnings release that "As a result of the positive net worth, no additional funding from the U.S. Department of the Treasury was required under the terms of the Senior Preferred Stock Purchase Agreement for the second quarter."

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