Friday, Freddie Mac (FRE) reported a third-quarter net loss of $25.30 billion or $19.44 per share, significantly wider than net loss of $1.24 billion or $2.07 per share in the previous year.
Third-quarter results were impacted 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.
On average, six analysts polled by First Call/Thomson financial expected a loss of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.
The company recorded negative revenues of $9.44 billion in the quarter, compared to last year's revenues of $878 million. Analysts expected revenues of $1.44 billion.
Net interest income for the third quarter of 2008 was $1.8 billion, up from $761 million a year ago.
Credit-related expenses, consisting of provision for credit losses and REO operations expense, were $6.0 billion for the quarter, compared to $1.4 billion for the third quarter of 2007.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.