Freddie Mac, which was recently seized by the federal government, is now asking the Treasury for $13.8 billion. The company reported a record quarter loss, which caused its net worth to drop below zero. Freddie reported in a statement Friday, that its net loss for the quarter increased to $25.3 billion after the company wrote down bad mortgages and troubled securities.

The Treasury Department set a news conference for 11 a.m. Sunday. Officials are expected to release details regarding their plans for mortgage backers Fannie Mae and Freddie Mac.

Both Freddie Mac and Fannie Mae may be placed under government control in order to rescue the two mortgage backers. The Treasury is expected to remove top officials at both companies and offer the largest financial bailout in history. The Associated Press has indicated that an official confirmation of the agency's plans may be released this weekend.

In order to gain extra capital, mortgage giant Freddie Mac is considering selling up to $10 billion in new shares. This comes just after the SEC has placed a curb against short selling the company's stock.