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Lehman Brothers

Freddie Mac seeks $13.8bn lifeline

By Francesco Guerrera in New York

Published: November 14 2008 21:23 | Last updated: November 14 2008 21:23

Freddie Mac, the mortgage financier that was nationalised two months ago, has asked the US government for a $13.8bn lifeline after suffering a record $25.3bn quarterly loss on large credit-related writedowns.

Freddie’s decision to tap the $200bn facility pledged by the Treasury when it seized the company and its peer, Fannie Mae, will add to the government’s bill for rescuing the battered financial sector.

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