Premises in the second quarter and losses of the United States more than 800 million subprime shock sustained

United States mortgage giant premises beauty (Freddie Mac) and the second financial quarter loss 8.21 billion, weaker than the already pessimistic expectations of Wall Street, while the company said may not meet federal regulators to set capital standards. This means that the United States market bubble burst and the subprime mortgage crisis, despite a year, the United States economy and the impact of financial industry continues.

(http://finance.) Premises in the second quarter and a net-loss 8.21 billion, loss per share was $ 1.63, the company counted 25 billion of credit loss reserve and recapture of a $ 1 billion in securities. This is the real beauty of continuous operation render deficit in the fourth quarter, the amount of accumulated losses of over 46 million.

Premises of the United States when the quarter revenue declined 28%, to $ 16.9. When the quarter credit losses increased to $ 8.1 million, first quarter and $ 5.28.

Premises of the United States said that the company may not achieve the regulatory body under the risk capital standards, which in turn may result in the company are Federal Housing Enterprise Inspectorate insufficient designation of capital. United States Government last month for the stable market confidence, has committed to funding the company.

Premises and the Chief Financial long Buddy Piszel said, given the current credit status, the premises of the United States is unlikely in the 2008 financial year profits. Piszel said data from companies, housing prices are relatively high point drop 18%-20%. House prices have fallen so far 11%. He said this about half of the expected decline.

Premises and assets fair value in the second fiscal quarter of further down to negative 56 million, first quarter and $ 52 for negative. This means that the company's estimated market value of assets has not and liabilities valuation.

In addition, the premises of the United States decided to reduce its mortgage-related securities portfolio purchase scale, it is expected that this will make the already so stuck in the doldrums of the housing loans market. The company reduced mortgage purchase scale may result in the owner's borrowing cost housing. In addition, the future can also result in the premises of the United States itself further losses.

This is because the premises housing loans to us and to reduce the size of purchase may result in investors lost confidence, which in turn raises mortgage investment products fully thrown up by the market. The mortgage-related securities to sell interest in not only damage to the premises of the United States the value of existing assets, and may force the company to be valuable capital as credit market deterioration caused by the additional losses for set aside.

Almost all of the United States mortgage institutions rely on premises and Fannie Mae both companies guarantee housing lenders. That is, buyers pay loans in arrears, the two companies have come to pay. But in price downturn, the two companies ' financial situation we are facing great pressure.