Freddie Mac Reports Third-Quarter Loss

Freddie Mac today reported a $475 million loss in the third quarter, down from a $4.2 billion profit in the second quarter of 2014 and marking Freddie’s first loss in four years.

The drop in Freddie’s income was largely due to derivatives losses, which totaled $4.2 billion. The company will not have to draw from the U.S. Treasury to cover its loss.