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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on November 14, 2008, 08:02:19 AM

Title: Freddie: $25B loss, taps tax dollars
Post by: Bindare_Dundat on November 14, 2008, 08:02:19 AM

Mortgage finance firm reports huge quarterly loss - Treasury pumps in $14 billion backstop.

NEW YORK -- Freddie Mac reported a $25 billion quarterly loss Friday that forced the mortgage finance giant to tap $100 billion in bailout money set aside by the government.

The loss triggered a $13.8 billion Treasury Department investment in Freddie (FRE, Fortune 500). The firm is likely to get the money by the end of the month; Treasury will receive preferred shares in return. A Treasury spokeswoman did not have any immediate comment.

Seems to be a growing trend these days.  ::)

Title: Re: Freddie: $25B loss, taps tax dollars
Post by: Hereford on November 14, 2008, 09:22:14 AM

If a company can get bailed out of any losses by the government, what is their motivation to run a sound business?

Title: Re: Freddie: $25B loss, taps tax dollars
Post by: Slapper on November 15, 2008, 11:42:38 AM

Quote from: Hereford on November 14, 2008, 09:22:14 AM

If a company can get bailed out of any losses by the government, what is their motivation to run a sound business?

Have you ever heard of socializing losses and privatizing gains?

Title: Re: Freddie: $25B loss, taps tax dollars
Post by: IFBBwannaB on November 15, 2008, 01:23:43 PM

Quote from: Hereford on November 14, 2008, 09:22:14 AM

If a company can get bailed out of any losses by the government, what is their motivation to run a sound business?

Ask these people: