Fannie and Freddie may need another $215 b

Friday, 22 October 2010 04:57 - - {{hitsCtrl.values.hits}}

NEW YORK (Reuters) - Fannie Mae and Freddie Mac may need as much as $215 billion in additional capital from the Treasury through 2013 to offset losses and maintain a positive net worth, their federal regulator said on Thursday.

Cumulative capital needs of the two housing finance giants that were seized by the government in late 2008 will likely fall between $221 billion and $363 billion through 2013, the Federal Housing Finance Agency estimated.

The companies have drawn $148 billion in the form of preferred stock purchases by the Treasury through the second quarter of 2010. Dividend payments on the preferred stock are making up larger portions of the capital needs as time passes, the FHFA said in a statement.