The implicit guarantee of Freddie Mac was being extended to fronting cash to investment banks to support speculation?
Freddie Mac Discloses Large Exposure to Lehman
By JAMES R. HAGERTY and APARAJITA SAHA-BUBNA
SEPTEMBER 19, 2008
Wall Street Journal
Among the creditors stung by this week's bankruptcy filing of Lehman Brothers Holdings Inc. is another casualty of the credit crunch: Freddie Mac.
Freddie disclosed in a securities filing Thursday that it hasn't received principal payments of $1.2 billion plus interest on short-term loans to Lehman that were due Monday. A Freddie spokesman said the loans were part of the mortgage company's routine management of cash reserves and were made in late August.....
