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Fannie Mae sends another $10.2B back to Treasury

  • Net income of $10.1B is reduced by $10.2B payment to Treasury, leading to negative $0.03 per share figure in earnings report. After latest payment, Fannie (FNMA.OB) will have sent $105B back to taxpayers against $117.1B received.
  • Freddie Mac (FMCC.OB) - which yesterday reported a $5B profit - has sent back $41B after drawing $72B.
  • Fannie expects to be profitable "for the foreseeable future" and expects substantial income tax payments to accompany dividend payments to Treasury going forward.
  • Full Fannie Mae earnings release.
Comments (5)
  • LYogi
    , contributor
    Comments (1991) | Send Message
     
    is this a feel-good story in the making?
    8 Aug 2013, 09:34 AM Reply Like
  • David Sims
    , contributor
    Comments (303) | Send Message
     
    Freddie's DTA is still unrecorded. The two companies only need to record $14.8 billion in the next few Qs to reach NET ZERO. This is a critical time for reform.
    8 Aug 2013, 09:43 AM Reply Like
  • Todd Monka
    , contributor
    Comments (53) | Send Message
     
    I am scratching my head on this one...Could someone please explain why the government is in the(financial) private sector? Why is this a publicly traded stock and yet investors see no upside on their investment?
    8 Aug 2013, 10:22 AM Reply Like
  • David Sims
    , contributor
    Comments (303) | Send Message
     
    What's even more interesting is that the value of the government's common warrants is now about $11 billion based on the current market caps of each company and the 79.9% ownership the warrants bring. If they turn off this 100% dividend sweep, the value of the common shares would easily surge high enough to make paying back taxpayers in the next few months a certainty.
    8 Aug 2013, 10:29 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
     
    Or the government can use the GSE's as a source of funds and keep the 100 dividend. I doubt there's much value left in any of this equity.
    8 Aug 2013, 02:28 PM Reply Like
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