Freddie Taking Charge on Donation

Freddie Mac plans to take a $225 million ($0.21 a share) pretax charge in the fourth quarter for a donation to its charitable foundation and other causes. The charge reflects operating earnings, not net earnings.The company, which is having a spectacular year, will release fourth-quarter earnings by the end of January. In the third quarter, Freddie Mac posted net earnings of $1.37 billion. It's quite likely that even with the $225 million charge, the company will earn well over $1 billion in the fourth quarter. Of the $225 million, $205 million is going to the Freddie Mac Foundation (which focuses solely on "children at risk" issues), while the balance is going to charitable causes in the greater Washington metropolitan area. In the fourth quarter of last year, Freddie Mac's chief competitor, Fannie Mae, took a similar charge ($300 million/$0.21 a share) to fund its charitable arm. Freddie Mac's chairman and chief executive officer, Leland Brendsel, serves as chairman of the foundation's board. Freddie Mac can be found on the Web at http://www.freddiemac.com.