No capital raising planned at Freddie Mac- CFO

Wed Mar 12, 2008 9:05am EDT
 
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NEW YORK, March 12 (Reuters) - Freddie Mac (FRE.N), the second biggest provider of funding for U.S. residential mortgages, has sufficient capital to grow its single- and multifamily loan businesses, Chief Financial Officer Buddy Piszel said on Wednesday.

Despite speculation that more capital is needed, "from a defensive position we feel okay," Piszel told analysts at a meeting in New York. "There is no dilutive capital raise planned.

The government-chartered company raised $6 billion in capital last quarter, but reported a loss of $2.5 billion as falling home prices and rising defaults boosted credit-related expenses. It also boosted its expected losses for 2008 and 2009 by a combined $1.5 billion to $5.1 billion. (Reporting by Al Yoon; Editing by Theodore d'Afflisio)

 

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