Shares of Freddie Mac soared on Monday, nearly doubling in price on the first trading day after the second-largest provider of U.S. home mortgage funding posted its first quarterly profit in two years , Reuters India reports.
Freddie Mac booked net income of $768 million in the second quarter on Aug. 7, attributing much of that profit on one-time accounting adjustments, mark-to-market gains due to the rise in interest rates and lower funding costs stemming from its federal financing plan. The company also said it reduced its provision for future credit losses by $3.9 billion from last quarter to $5.2 billion , Bloomberg reports.
One notable mover to the upside Monday was another bailed-out financial giant, American International Group Inc. (AIG), which rose for the fourth straight session after more than doubling last week. Shares of AIG, the insurance company that is roughly 80% owned by U.S. taxpayers, was up 8% at last check , Wall Street Journal reports.