Freddie Eying Bigger Capital Raise (Update)

Updated from 12:17 p.m. EDT.

Freddie Mac(FRE) on Friday registered itself with Securities and Exchange Commission, marking the latest step in getting out from under restrictions put in place by federal regulators after a 2003 accounting scandal.

Freddie's Form 10 registration statement allows it to operate under the same standards as other public companies, filing quarterly and annual financial reports, as well as disclosure statements and insider transactions in a timely manner through the SEC's Edgar system. Since the 2003 scandal, Freddie and its counterpart Fannie Mae(FNM) had not been required to file in a timely fashion as they worked on material weaknesses in their accounting procedures.

In its filing, the government-sponsored mortgage giant also reaffirmed a commitment to its regulator, the Office of Federal Housing Enterprise Oversight, to raise $5.5 billion of new core capital through stock offerings. A report Friday in the Wall Street Journal, citing unnamed sources, suggested that Freddie may issue up to $10 billion in new shares to shore up capital, which has been depleted because of problems in the housing market and a massive stock selloff.

"Becoming an SEC registrant marks an important milestone for the company and demonstrates our commitment to enhanced transparency and financial reporting," Chairman and CEO Richard Syron said in a statement.

However, Syron noted that becoming an SEC registrant "does not relate to an offering of securities."

Spokesman Michael Cosgrove would not confirm or deny the Journal's report, and said further details on the timing and amount of a stock sale are not yet available.