Freddie joins Fannie in warning on future profits


Q1 net income of $4B vs. $8.6B in Q4. The Q1 result includes $3.4B in after-tax legal settlements and $1.6B in after-tax losses on interest rate hedges. It's the 10th consecutive quarter of positive earnings, but "[The] recent level of earnings is not sustainable over the long term," says Freddie Mac (FMCC +1.5%).

The June dividend obligation to Treasury will be $4.5B, brining total to $83.6B vs. $72.3B in draws.

Full earnings report

Previously: Freddie Mac reports Q1 profit

Previously: Fannie Mae net income of $5.3B; expects to remain profitable

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Comments (8)
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    How is it legal to steal dividends from the owners of the company?
    8 May 2014, 12:36 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Doesn't the federal government "own" these companies now?
    8 May 2014, 12:51 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    Usually (and legally) when someone owns something and then that thing is owned by another entity the first entity is paid for the transfer of ownership.
    8 May 2014, 03:12 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Do we need to rehash history or did you forget the US Gov took these 2 into receivership?

     

    Or would you have preferred that they let them collapse and equity holders get....$0? (not to mention the economic side effects)
    8 May 2014, 06:34 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    idkmybffjill:

     

    Please stop responding to my comments and if you are following me please un-follow.

     

    Thank you.
    8 May 2014, 08:20 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Don't flatter yourself - we sparred a couple times on SHLD articles. This is the first time i'm commenting on anything outside of that.
    9 May 2014, 11:25 AM Reply Like
  • heyo
    , contributor
    Comments (65) | Send Message
     
    I thought you guys were accustomed by now to the American Government screwing you over...
    8 May 2014, 01:34 PM Reply Like
  • Blitztour
    , contributor
    Comments (61) | Send Message
     
    Where are my dividends…my value as a long term investor??
    How long can we allow the fed to steal our earnings?
    But if you’re an investor and haven’t made your voice heard to your legislative rep, you really need to call or email and read them the riot act about returning these entities to their owners. Midterm elections are 6 months away and if they’re listening!
    This idea that they’ll reinvent the wheel and find privatefunding to make a 30 year mortgage possible on a middle class income is absolutely INSAIN! They will turn us into a nation of renters!
    But don’t take my word for it. You wanna see a prime exampleof the Fed deciding to revamp rather than revise a few rules to make thingsfunction properly, just look at the Dept of Homeland Security!
    And the same type of clusterf@#* is waiting for Fannie &Freddie if we let them do it to us!
    8 May 2014, 01:44 PM Reply Like
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