Government-controlled mortgage finance giant Freddie Mac hit up Hank Paulson for $14 billion last week after posting a huge quarterly loss. In a research report issued Monday, FBR Capital Markets analyst Paul Miller says that Treasury can expect additional requests next year:
With continued elevated credit cost and write-downs in mortgage assets, we estimate that earnings losses could reach $20B to $40B in FY09. As a result, the magnitude of necessary capital injections by the Treasury could reach $30B to $50B in FY09 and postpone any thought of spinning [Freddie Mac] back out to the public until FY10.
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