Banking & Finance

Freddie Mac (FRE) Manages To Lose $25 Billion

FedFreddie Mac (FRE) reported a net loss of $25.3 billion, or $19.44 per share, for the quarter ended September 30, 2008, compared with a net loss of $1.2 billion, or $2.07 per share, a year earlier.

Third-quarter results were driven primarily by a non-cash charge of $14.3 billion related to the establishment of a partial valuation allowance against the company’s deferred tax assets, $9.1 billion in security impairments on available-for-sale securities and $6.0 billion in credit-related expenses arising from the dramatic deterioration in market conditions during the third quarter, including declining home prices, increasing unemployment, a significant decline in consumer spending and a considerable tightening of both consumer and business credit

Douglas A. McIntyre