Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Financial Planning > Tax Planning > Tax Loss Harvesting

Freddie Mac Loses $4.1 billion in Q3

By John Sullivan

X
Your article was successfully shared with the contacts you provided.

Freddie Mac on Wednesday reported a net loss of $4.1 billion, or $1.25 per diluted common share, for the third quarter of 2010, compared with a loss of $6 billion, or $1.85 per diluted common share, for the second quarter of 2010.

The Federal Housing Finance Agency, Freddie Mac’s conservator, said it will ask Treasury for a draw of $100 million under the Senior Preferred Stock Purchase Agreement.

The company, which trades as a penny stock on the over-the-counter market as FMCC since the company was delisted from the NYSE in July, said the loss resulted from several factors, including a dividend payment of $1.6 billion to Treasury, which exceeded total comprehensive income of $1.4 billion.

The company reported total comprehensive income of $1.4 billion for the quarter ended Sept. 30, compared to a total comprehensive loss of $0.4 billion for the quarter ended June 30. Total comprehensive income for the third quarter includes the net loss of $2.5 billion for the quarter, which was more than offset by a $3.9 billion improvement in AOCI, primarily driven by increased fair values of the company's AFS securities as interest rates continued to decline.

The company had a net worth deficit of $58 million at Sept. 30, 2010, compared to a net worth deficit of $1.7 billion at June 30, 2010.

"As we near the end of 2010, the housing market remains fragile, and has recently come under renewed pressure from slowing economic growth, weaker employment and foreclosure uncertainties," Freddie Mac Chief Executive Officer Charles E. Haldeman, Jr, said is a statement. "We believe that it will be a considerable time until the housing market has a sustained recovery."

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.