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July 25, 2008 11:23:00 AM CDT

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Freddie Mac Reports Record $2.45B Loss

Posted Feb 28, 08 10:27 AM CST in Business 

(Newser) – Freddie Mac, the nation’s second-largest mortgage finance company, lost $2.45 billion in 2007's fourth quarter, topping the record $2.02 billion it lost the previous quarter, Bloomberg reports. Freddie’s CEO predicted still-greater losses ahead as loan defaults take their toll, but said the company had raised enough money to weather the storm—unless things get drastically worse.

The loss of $3.97 per share was worse than expected, with analysts having forecast a $2.34 per-share drop, the Wall Street Journal reports. Freddie Mac and fellow government-backed financier Fannie Mae together account for 45% of the home loan market. Fannie yesterday reported $3.56 billion in losses. It’s “discouraging,” said one trader. “Right now, I see no relief” for housing.

Sources Bloomberg, Wall Street Journal

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Richard Syron, chairman and CEO of Freddie Mac, talks about the sub-prime lending crisis and its effect on the housing market in Boston in this April 27, 2007 file photo. (AP Photo/Stephan Savoia, file)   (Associated Press)
Richard Syron, chairman and CEO of Freddie Mac, answers a reporter's question in Boston in this April 27, 2007 file photo. The mortage-investment company took a $2.45 billion loss in the fourth quarter...   (Associated Press)
A house is for sale Friday, June 1, 2007 in Oldwick, N.J. (AP Photo/Mark Lennihan)   (Associated Press)
An auction sign rests in front of this foreclosed home in Shaker Heights, Ohio in this Tuesday, Oct. 30, 2007 file photo. (AP Photo/Tony Dejak, File)   (Associated Press)
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subprime crisis  • mortgage  • Fannie Mae  • Freddie Mac  • quarterly earnings  • mortgage defaults  • mortgage brokers


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