(Bloomberg) — Freddie Mac, the U.S.-owned mortgage financier, will send $746 million to the Treasury Department next month after reporting first-quarter net income of $524 million.
The new payment by McLean, Va.-based Freddie Mac, which has been under conservatorship since 2008, will bring total returns to $92.6 billion, according to a regulatory filing Tuesday, far beyond what the company received in federal aid to stay afloat during the credit crisis.
The company again avoided a quarterly loss even while suffering sizable expenses from derivatives — totaling $2.4 billion in the period that ended March 31 — that under generally accepted accounting principles aren't offset by gains on the assets being hedged. Losses in any period that reduce its net worth, which is steadily declining under its bailout agreement, below zero would require the company to take more U.S. funds, potentially drawing unwanted attention from policy makers.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
