The government-controlled mortgage giant, Freddie Mac, posted its net income of $1.2 billion for the second quarter. Freddie Mac and its larger sibling Fannie Mae were rescued by the government in September 2008 after substantial losses on risky mortgages threatened the companies’ collapse.
American taxpayers have spent nearly $170 billion to save Freddie and Fannie, which was the most expensive bailout in the 2008 financial crisis. It could reportedly cost taxpayers $200 billion more to support the mortgage giants through 2014 after subtracting dividend payments, according to the government. This is the fifth quarter in which Freddie Mac hasn’t requested federal aid since the government took control in 2008.
