Tuesday, November 20, 2007

Freddie Mac looking to raise more capital

An $8 billion write down, quarterly losses, and dividend cuts as housing hits FRE hard. They need to raise capital to increase their mandatory surplus.

So Freddie Mac hired Goldman Sachs to help them.

Yesterday, Goldman slammed Citigroup, and today Freddie is down almost $5 points pre-market on capital concerns.

Obviously, Goldman wasn't hired by Freddie Mac this morning.

Maybe that's why Goldman was so bearish on Citigroup yesterday.

But then I'd be conspiratorial. And only a blog would write something like that.

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