Nov 20, 2007

Freddie Mac's Syron: "Playing a stabilizing role in the markets"

We recognized the challenges facing the mortgage markets, however, and have taken further steps to address them. At the same time, as our charter mandates, we have continued to meet our mission by playing a stabilizing role in the markets and supporting our customers.

It will take time for this market to turn around. But as it improves, we are optimistic about Freddie Mac's longer-term prospects. The market shift towards fixed rate originations and improved pricing and credit standards should position us well as the weakness in credit markets begins to improve and we are able to leverage our traditional strengths.

~ Richard Syron, Chairman and Chief Executive, Freddie Mac, "Freddie Mac Net Loss Widens," The Wall Street Journal, November 20, 2007, by John Flowers

(Freddie Mac reported a 3rd quarter loss of $2 billion, said its estimated regulatory core capital is almost below the regulatory minimum of 30%, is "seriously considering" reducing its 4th quarter dividend by 50%, and has engaged Goldman Sachs and Lehman Brothers to help consider "very near-term capital raising alternatives.")

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