Freddie Mac widened its 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.

The 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.

The amount of Freddie's red ink, coupled with the $29 billion loss disclosed Monday by Fannie, shows just how bad things had gotten for the firm ahead of their seizure.

Freddie reported a net loss of $25.3 billion, or $19.44 a share, compared with a year-earlier net loss of $1.24 billion, or $2.07 a share, a year earlier. Included in the latest quarter was a $14.3 billion write-down of deferred tax assets, which can be used for a certain time to offset future profits.

Analysts polled by Thomson Reuters had expected a per-share loss of 89 cents.

The company posted negative revenue of $9.44 billion, compared with positive revenue of $878 million a year earlier, amid $9.1 billion in write-downs on available-for-sale securities and $2.7 billion in mark-to-market losses amid falling long-term interest rates.

Credit-related expenses rose to $6 billion from $1.4 billion a year earlier as credit-loss provisions surged to $5.7 billion from the second quarter's $2.5 billion on continued deterioration in its single-family credit guarantee portfolio. Delinquency rates and losses per property continue to rise.

Net interest income more than doubled amid lower funding costs, while administrative costs dropped 28% amid falling short-term performance compensation.

Shares of Freddie fell 9.6% to 66 cents in premarket trading.

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