The Treasury Department ought to make sure its emergency plan for the mortgage giants is ready soon.

For one, the bleeding at the second-biggest buyer of mortgages, Freddie Mac, shows no signs of stopping. Freddie today reported a larger-than-expected loss of $821 million for the fourth quarter. It was its fourth consecutive quarterly loss.

The company is still talking about raising $5.5 billion in additional capital, but disclosed no details about how it plans to do so. It also said it expected to cut its dividend of 25 cents per share to 5 cents or less. In short, the scramble to raise capital is far from over.

Dick Syron, Freddie's chief executive, who ignored warnings about deteriorating lending standards and growing risk four years ago, noted that the company still has "a surplus over all regulatory capital requirements."

But he cautioned, "We expect continued housing and economic weakness will affect our overall performance this year."

Freddie's credit-related expenses, including provisions for losses, grew to $2.8 billion in the quarter, double that of the quarter a year ago. The provision for credit losses rose as delinquency rates increased and the number of foreclosures rose.

"The credit deterioration has largely been driven by the continued decline in home prices and other declines in regional economic conditions, particularly in the North Central, Southeast, and West regions," the company said in a statement.

Shares of Freddie have tumbled 76 percent this year as fears mount that the company, and its larger sister, Fannie Mae, do not have enough capital in the face of the deepest housing slump since the Depression. A year ago, Freddie reported a profit of $729 million for the quarter.

The big loss today may dampen some of the bullishness in the market.

The one silver lining in the wobbles of the mortgage giants is the work the crisis is providing for Wall Street. Goldman Sachs and J.P. Morgan Chase are helping Freddie, while Morgan Stanley is advising the Treasury Department.