Okay Freddie slashed it's dividend 80% or more.
They shouldn't be paying a dividend at this time. In the big picture the dividend cut is prudent behavior. The cut should produce an annual savings of $500 million.
Net interest income "soared," CNNMoney.com reported, to $1.5 billion from $793 million.
That's a good thing!
Here's a revelation for you, Freddie Mac is involved in the mortgage lending business and will continue to experience adjustments and losses due to foreclosures at least for the foreseeable future. Isn't that an insightful piece of information.
Freddie will not fail, won't happen, not now, probably not ever.
The good news;
The newest piece of legislation will provide cheaper money through the treasury, and pretty much an unlimited supply.
Also, I firmly believe that at some point in time that Freddie's stock will stabilize as well as their mortgage portfolio. The stock price will be sufficiently low enough to attract some major investor who will make an extremely large purchase. You heard it here first, or maybe you've also heard it elsewhere.
The bottom line is while they are experiencing some pain