Wednesday, March 11, 2009

Freddie Mac: $23.9 Billion Loss, Asks for $30.8 billion in funding

by Calculated Risk on 3/11/2009 04:56:00 PM

Press Release: Freddie Mac Reports Fourth Quarter and Full-Year 2008 Financial Results

Freddie Mac today reported a net loss of $23.9 billion ...

For the full-year 2008, the company reported a net loss of $50.1 billion ...

Fourth quarter 2008 results were driven primarily by net mark-to-market losses of $13.3 billion on the company’s derivative portfolio, guarantee asset and trading securities due to the impacts of spread widening and declines in interest rates. In addition, the company recorded $7.2 billion in credit-related expenses related to the continued deterioration in economic conditions during the fourth quarter, including a rapid deterioration in labor markets, steeper declines in home prices, and a drop in consumer confidence to record lows. Results were also impacted by security impairments on the company’s available-for-sale securities of $7.5 billion primarily due to sustained deterioration in the performance of the underlying collateral on the company’s non-agency mortgage-related securities.

... Pursuant to Treasury’s funding commitment under the Purchase Agreement, the Director of the Federal Housing Finance Agency (FHFA) has submitted a request to Treasury for funding in the amount of $30.8 billion. The company expects to receive such funds in March 2009.
emphasis added
The $30.8 billion in funding is in line with the announcement in January.