Financial Times FT.com

Freddie Mac profits plunge

By Saskia Scholtes and Michael MacKenzie in New York and Eoin Callan in Washington

Published: August 30 2007 14:49 | Last updated: August 30 2007 21:16

Freddie Mac posted a 45 per cent plunge in second-quarter profits on Thursday, fuelling market fears about the US housing downturn and a liquidity crunch ahead of Friday’s key speech by Ben Bernanke, Federal Reserve chairman.

Shares in the US government-sponsored home mortgage lender fell 4.6 per cent on its report of net income of $764m, compared with $1.4bn a year earlier.

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