Financial Times FT.com

Home lenders slump on Freddie Mac loss

By Daniel Pimlott, Ben White and Saskia Scholtes in New York

Published: November 20 2007 15:13 | Last updated: November 27 2007 23:20

Shares of leading US home lenders plunged on Tuesday after Freddie Mac, the government-sponsored mortgage company, revealed a $2bn loss, its largest ever, and said it would have to raise more capital to meet its regulatory requirements.

Freddie’s problems led to calls in Congress for an additional action by the Bush administration to respond to problems in the housing sector, which began with the collapse of the US subprime mortgage market.

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