Your mother told you not to bring those filthy things inside, but you snuck them in anyhow. Now, blind, helpless, cold, foul smelling and featherless, the screaming, greedy mouths of the GSEs seem to gape endlessly, never satisfied and eager to suck more capital from the mouths of strained and frantic surrogates, forced to hunt eighteen hours a day to keep the damn things from chewing off a foot in their lust for fiscal calories, or screaming so loudly that your parents may burst in to hear which cat is being brutally tortured. No sooner have they had a hard-won, slime covered bit of roadkill been dumped into their bottomless, sucking orifices than was another immediately required.
Freddie Mac posted a $25.3 billion net loss in the third quarter on surging investment and credit losses as the company announced plans to seek an initial $13.8 billion from the Treasury Department to cover the hole in its shareholder equity.
Treasury pledged up to $100 billion each for Freddie and Fannie Mae when they were put under conservatorship in September to prevent their potential bankruptcy. The government will receive preferred stock for any money given to the firm, and Freddie expects to receive its $13.8 billion request by Nov. 29.
Freddie's Loss Balloons to $25.3 Billion [The Wall Street Journal]