Hell the financials:(13): :(13):
Freddie Mac mulling $10 bln share offer: report
Friday July 18, 12:53 am ET
(Reuters) - Mortgage giant Freddie Mac (NYSE:FRE - News) is considering raising capital by selling as much as $10 billion in new shares to investors, The Wall Street Journal reported, citing people familiar with the matter.
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The main buyers for any new-stock issues are likely to be existing shareholders worldwide, the paper said, citing one person involved in the discussion.
A definitive plan has not yet been determined, the person told the paper.
Shares of Freddie Mac and Fannie Mae (NYSE:FNM - News), the two pillars of the U.S. housing market, have taken a beating this year as the companies face mounting losses due to delinquent borrowers, rising foreclosures and pressure to increase their exposure to the mortgage market as a way of stabilizing housing.
The U.S. Treasury and Federal Reserve have announced a plan to shore up Freddie Mac and Fannie Mae balance sheets and borrowing capabilities, and helped shore up investor confidence.
Together, the companies own or guarantee more than $5 trillion in U.S. mortgages. They have lost more than $11 billion since June, and have predicted more losses to come.
(Reporting by Pratish Narayanan in Bangalore; Editing by Tomasz Janowski)
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发表于 2008-7-18 12:38 AM
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