Freddie Mac Reports Record $2.45B Loss

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. (More Freddie Mac stories.)