Money Minute: Freddie Mac,Countrywide, Retailers

BusinessMoney Minute: Freddie Mac,Countrywide, RetailersMoney Minute: Freddie Mac,Countrywide, RetailersThe Associated PressMortgage financier has Freddie Mac has reported an $821 million second-quarter loss. The AP's David melendy reports on that and the rest of Wednesday's business headlines. (Aug 6)AP Money MinuteMortgage financier has Freddie Mac has reported an $821 million second-quarter loss. The decrease of one dollar and sixty-three cents per share was more than three-times larger than Wall Street expected. The dismal results come just weeks after the government threw a financial lifeline to Freddie and its sister company Fannie Mae to ward off fears the pair could collapse and take down the U.S. mortgage market. ------------------------------Connecticu t is suing Countrywide Financial, alleging it misled borrowers into taking on risky home loans they could not afford. The state alleges the mortgage giant violated its consumer protection laws and charged unjustified fees to homeowners who defaulted. California, Illinois and Florida have filed similar lawsuits against the lender, whose shareholders recently approved a takeover by Bank of America.-------------------------------- -Retailers are preparing for a difficult back-to-school season and are aggressively slashing prices and amping up marketing in the battle for parents' bucks. Just how skittish shoppers are feeling will be seen tomorrow when many retailers report their July sales for stores open at least a year. A weak back-to-school season may signal trouble for the all-important holiday season, which begins not long afterward.-----------------------I'm David Melendy with AP Money Minute ___ ___, The Associated Press.