NEW YORK, Aug. 13, 2008 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that it is investigating possible securities and other legal violations by the Federal Home Loan Mortgage Corporation ("Freddie Mac") (NYSE:FRE) and (NYSE:FRE-PZ) as a result of its announcement on August 6, 2008, reporting a net loss of $821 million, or $1.63 per share, a substantial dividend cut and a substantial $3.7 billion increase in provisions for credit losses.
If you wish to discuss this matter, please contact Roy L. Jacobs at 1-888-884-4490 or by e-mail at rjacobs@jacobsclasslaw.com.
It appears that since November 2007, the Company may have under-reserved for bad loans and sub-prime investments leading to delayed asset write-downs. On or about November 29, 2007, the Company sold $6 billion in Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Shares (the "Preferred Shares") which trade under the symbol FRE-PZ in a public offering (the "Offering"). The Preferred Shares, which were offered at $25 per share, have lost over 40% of their value.
Freddie Mac common shares which traded in the $30 range in late 2007 have been decimated by the subsequent revelations of the Company's losses and write-downs, so that Freddie Mac common shares are now trading below $6, wiping out hundreds of millions of dollars in shareholder value. Due to the continuing deteriorating situation, there have been suggestions that a government bail-out might be necessary.
If you purchased Freddie Mac common shares (FRE): (i) during the period from November 29, 2007 through August 5, 2008; or (ii) the Preferred Shares (FRE-PZ) in the Offering or during the period from November 29, 2007 through August 5, 2008, and still hold your shares at a loss, or, if you have sold them at a loss, and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.