Freddie Mac Accounting Changes Cut Losses By $2.6 Billion

From Bloomberg:

May 14 (Bloomberg) -- Freddie Mac, the second-largest U.S. mortgage-finance company, reported a smaller loss than analysts estimated after accounting changes reduced charges by at least $2.6 billion.

Without the use of two new accounting rules, Freddie Mac would have posted a loss of at least $1.7 billion, analysts said.

Freddie Mac also announced that it would raise $5.5 billion in capital with common and preferred stock, which represents at today's market cap about 30% of dilution for the shareholders.

The stock price ended up +9.17%, showing how good these news were.