Freddie Mac's federal regulator slapped the No 2 US mortgage finance company with a 30 percent higher minimum capital requirement on Thursday until it sorts out its books after an accounting scandal.
The regulator, the Office of Federal Housing Enterprise Oversight, said Freddie Mac would have to hold 30 percent more capital than its current minimum requirement of 2.5 percent of assets plus 0.45 percent of off-balance sheet obligations until government-sponsored enterprise reports earnings in a timely fashion.
"This capital directive by OFHEO will help to assure the public and Congress that Freddie Mac will remain financially healthy as it works to restore the public's trust," said Armando Falcon, the regulatory agency's director.
Comments
Comments are closed.