Freddie Mac cut its quarterly dividend in half Tuesday and announced plans to sell $6 billion in preferred stock to bolster its finances in anticipation of more losses.

Freddie Mac, chartered by Congress to buy home loans from mortgage lenders, is the nation’s No. 2 buyer and guarantor of home loans after its government-sponsored competitor Fannie Mae. It will sell $6 billion of a special class of stock.

The money raised through the sale will be used to buttress the company’s balance sheet “in light of actual and anticipated losses,� Freddie Mac, based in McLean, Va., said Tuesday in a statement.

Management of the stock offering was led by Lehman Brothers and Goldman Sachs, the Wall Street firms recently hired by Freddie Mac as financial advisers to help it examine possible new ways of raising capital.

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Submitted: Nov 28, 2007    Views: 299    Comments: 0    Likes: 1   


View Article: http://www.nytimes.com/2007/11/28/business/28freddie.html?ref=business


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