Freddie Mac reports Q3 loss of $25 billion

Mon. November 17, 2008; Posted: 09:39 AM

Nov 17, 2008 (Datamonitor via COMTEX) -- FRE | Quote | Chart | News | PowerRating -- Federal Home Loan Mortgage has reported a net loss of $25.3 billion, or $19.44 per diluted common share, for the quarter ended September 30, 2008, compared to a net loss of $1.2 billion, or $2.07 per diluted common share, for the quarter ended September 30, 2007.

As a result of the net loss, at September 30, 2008, the company's stockholders' deficit totaled $13.8 billion.

Federal Home Loan Mortgage (Freddie Mac) has said that the 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 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.

Net interest income for the third quarter was $1.8 billion, up $1.1 billion from $761 million in the third quarter of 2007.

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For full details on Freddie Mac (FRE) click here. Freddie Mac (FRE) has Short Term PowerRatings of 3. Details on Freddie Mac (FRE) Short Term PowerRatings is available at This Link.

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