Updated from 10:56 a.m. EDT
said Wednesday it has requested additional funds from the government, as it reported a huge quarterly loss and named replacements for departing Chairman and CEO David Moffett.
The mortgage-finance giant requested $30.8 billion in additional government funds and said it lost $23.9 billion last quarter, or $7.37 per share. The loss was nearly 10 times as high as the year-ago quarter's loss of $2.5 billion, driven by a deterioration in its massive book of mortgage debt.
For all of 2008, the troubled firm lost $50.1 billion, or $34.60 per share, compared with a loss of $3.1 billion, or $5.37 per diluted common share, in 2007.
Freddie also said that John Koskinen will become CEO, while Robert Glauber will replace him as non-executive chairman. Both appointments are expected to be temporary, starting when Moffett leaves, as the troubled mortgage-finance giant seeks permanent replacements. Moffett said last week that he would depart
no later than Friday.
Koskinen joined Freddie as non-executive chairman when the firm was placed into conservatorship with larger rival
last September. Before that, he served in various political positions and as president of the U.S. Soccer Foundation. While his experience in banking and mortgage finance appears slim, he has participated in the restructuring of various distressed enterprises, including the Penn Central, the Teamsters Pension Fund, Levitt and Sons and Mutual Benefit.
Glauber joined the board of directors in 2006 and is a lecturer and visiting professor at Harvard University. He has also held leading roles at the National Association of Securities Dealers, Treasury Department and
Freddie Mac is working with the Federal Housing Finance Agency to find a permanent CEO replacement, and expects Koskinen to eventually return to the chairman position.
Shares of Freddie Mac closed flat at 42 cents.