|Freddie Mac reported a massive $25 billion quarterly loss.
The McLean, Va.-based firm said today that losses before income taxes during the three months ended Sept. 30 were $25.3 billion.
Freddie had an $0.8 billion loss in the second quarter. A year earlier, losses before income taxes were $1.2 billion.
Results were as drastic as those from secondary lending rival Fannie Mae -- which reported a $29 billion third-quarter loss.
Freddie said it was impacted by a $14.3 billion non-cash charge for deferred tax assets. Fannie's third-quarter charge for deferred tax assets was $21.4 billion. Freddie also took $9.1 billion in security impairments on available-for-sale securities.
In addition, the government sponsored enterprise took $6.0 billion in credit-related charges consisting of provisions for credit losses and REO operations expense. The charges were tied to deteriorating economic conditions.
The latest results reflect a tumultuous period for Freddie, which along with Fannie was seized by FHFB in September and placed in conservatorship.
Stockholder equity stood at a negative $13.8 billion on Sept. 30.
The company's regulator, the Federal Housing Finance Agency, will request $13.8 billion from the U.S. Treasury under the purchase agreement signed when FHFA became conservator. The funds are expected to be received by Nov. 29. Freddie can draw up to $100 billion from the fund when FHFA determines liabilities exceed assets on a GAAP basis.