Freddie Mac seeks $10.6bn more from US

FREDDIE Mac is to ask for $10.6bn (£7bn) in state aid, as the stricken US mortgage lender saw a loss of $8bn during the first three months of 2010.

Part of the mammoth losses incurred by Freddie Mac account for $3.1bn in dividends paid to the Treasury Department.

Freddie Mac said it would have to continue relying on the US government for funding as the US housing market has not fully recovered.

The new cash request will bring the total costs paid to rescue Freddie Mac to $61.3bn as it has made a number of calls for cash from the US Treasury since 2008.

Freddie Mac was hit hard by the fall out of the US property market when sub-prime loans given out during the boom could not be repaid.