Freddie Mac may raise $10 billion

The explicitly guaranteed GSE, Freddie Mac, is mulling a possible $10 billion equity round to raise capital to try to avoid from kicking in the taxpayer-financed bailout that Hank Paulson is hot and heavy on.

I don’t know how you raise that much cash at such a terrible stock price without completely diluting the hell out of the rest of the shareholders; but onward I say.  Better the stockholders than the taxpayers.  I say raise away until the stock is worth nothing (better get moving).

From Market Watch:

Freddie Mac is considering raising capital by selling as much as $10 billion in new shares to investors, the Wall Street Journal reported Friday, citing unnamed people familiar with the matter. The move, which comes as emergency regulatory actions have triggered a two-day rebound in its stock, would have the potential to avoid a full-blown government rescue for Freddie…

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