US government-controlled mortgage finance giant Freddie Mac said Friday it swung into profit in the final quarter of 2011 but that it needed more taxpayer dollars to keep it afloat after a full-year loss. Freddie Mac reported $619 million in net income for the fourth quarter, compared to a net loss of $4.4 billion in the third quarter.
For the full-year 2011, Freddie Mac's losses narrowed to $5.3 billion from $14.0 billion in 2010. It received $7.6 billion in taxpayer funds in 2011, down from $13.0 billion in 2010. The home-loan company said in a statement the shift into profit in the October-December period was helped by a slower fall in long-term interest rates, which helped it reduce its losses on derivatives. Freddie Mac, however, said it ended the fourth quarter with a capital deficit of $146 million and would seek more funds from the US Treasury funds to wipe out the gap.