Freddie Mac-No Politics (FMCC)

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Fannie, Freddie could need another bailout

Mar 18, 2015 • SA Editor Yoel Minkoff
Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) could require more bailouts from U.S. taxpayers due to rising risks from shrinking reserves, said the FHFA's Inspector General in a report today.
The firms could chalk up losses on their derivatives portfolios again, similar to those they reported in the fourth quarter, increasing "the likelihood of additional Treasury investment," the report continued.
The possibility of another taxpayer draw raises pressure on Congress to overhaul housing finance laws, although new legislation is not expected anytime soon.