Freddie Mac reported earnings tonight, from the press release:
Fourth quarter 2008 net loss of $23.9 billion, or $7.37 per diluted common share, compared to a net loss of $25.3 billion, or $19.44 per diluted common share, in the third quarter of 2008. Losses were driven primarily by net mark-to-market declines on the company’s derivative portfolio, guarantee asset and trading securities; increased credit-related expenses; and security impairments. The company also recognized an additional valuation allowance against its net deferred tax assets.
It must suck a lot to own a $0.42 stock in a company that has managed to lose 1,754% of the value of one share. Amazing.
Full-year 2008 net loss of $50.1 billion, or $34.60 per diluted common share, compared to a net loss of $3.1 billion, or $5.37 per diluted common share, for the full-year 2007.
Net interest income of $2.6 billion in the fourth quarter of 2008, up $781 million from $1.8 billion in the third quarter of 2008. Net interest income for the full-year 2008 was $6.8 billion, up from $3.1 billion in 2007.
Don’t worry, they’re making it up in volume 
Freddie Mac’s Conservator has submitted a request to the U.S. Department of the Treasury (Treasury) for an additional $30.8 billion in funding for the company under the Senior Preferred Stock Purchase Agreement (Purchase Agreement) with Treasury.
Come again? You just lost $50 Billion, and now you want another $30 Billion of taxpayer money?
In 2008, Freddie Mac purchased or guaranteed more than $460 billion in mortgage loans and mortgage-related securities, helping to finance more than 1.7 million single-family homes and 620,000 units of rental housing.
While losing $50 Billion dollars….
Freddie Mac’s foreclosure-prevention efforts enabled approximately 88,000 borrowers facing financial hardship to stay in their homes or sell their properties in 2008.
Did I mention that they just lost $50 Billion dollars…. For those that are staying in their homes, approximately 36% of them will be adding to the 2009 losses. We like to lose taxpayer money twice!
Full-year 2008 total administrative expenses declined by 10 percent from 2007 as the company took actions to reduce spending.
That’s good, at least we saved $169 million in administrative expenses. God forbid we’d lose $50 Billion in a broken business or something terrible like that.
Well, I’m pretty sure that a $.42 cent stock isn’t going to crash the market overnight, but this doesn’t help anything. Lets just keep ringing up the tab for the housing bailout disaster.
When does the madness end? These horribly broken half government have private entities are a mess. Something has to be done, and more government isn’t the answer.
