Freddie Mac lost $2.5 billion in the fourth quarter, forcing the company to cut dividends by 50 percent, issue $6 billion in preferred stock, and reduce the size of its loan portfolio to meet regulatory capital requirements. Declining long-term interest rates required Freddie Mac to recognize a $2.3 billion reduction in value of derivative investments used to hedge against interest-rate changes. Provisions for credit losses on bad loans and sales of real estate-owned properties totaled $912 million, also taking a toll on the company's bottom line, the company said. But fees the company made from securitizing and guarantying mortgage loans during the fourth quarter were up 10 percent from a year ago, to $698 million. Over the long run, Freddie Mac Chief Executive Officer Richard...
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