Freddie Mac | featured news

Freddie Mac, facing mounting damage from the U.S. housing crisis, said Wednesday it will ask the government for nearly $31 billion in additional aid after posting a gargantuan loss of more than $50 billion last year.

The resignation comes amid rising losses and unresolved questions about the mortgage giant's path. The government-appointed chief executive of McLean, Va.-based Freddie Mac said Monday that he was resigning from the mortgage-finance giant, less than six months into the job.

The Obama administration announced new plans to make it easier for up to nine million people to rework or refinance their mortgages. Geithner said the Treasury is increasing its funding commitment to Fannie Mae and Freddie Mac.

The $700 billion financial-sector bailout is likely to rely on a broad range of tools, from injecting additional capital into banks and helping homeowners avoid foreclosure to expanding the roles of the Fed, Fannie Mae, Freddie Mac and the FDIC.