Friday, November 23, 2007
The bad news keeps coming for Freddie Mac. On Tuesday, it announced a $2 billion third quarter loss. The next day, shareholders filed a lawsuit charging the company with misleading investors about its risk-management practices. Earlier this month, the New York Attorney General issued subpoenas to Fannie Mae and Freddie Mac and demanded they get independent appraisals on the loans they purchased from banks. WPost, News Gets Worse for Freddie As Shareholders File Lawsuit.