On Friday, the Federal Home Loan Mortgage Corporation (“Freddie Mac”) announced its intention to draw an additional $30-35 billion from the $100 billion Senior Preferred Stock Purchase Agreement between Freddie Mac and the Treasury. Freddie Mac cited preliminary financial data indicating weak results for the fourth quarter and year end of 2008.

In the third quarter, the mortgage giant announced a $25 billion loss, requiring an injection of capital from the Treasury. On September 7, 2008, the Federal Housing Finance Agency placed both Freddie Mac and the Federal National Mortgage Association in conservatorship and the Treasury committed to provide up to $100 billion of capital to each institution.