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Freddie Mac earns $1.9B; sends it to Treasury

  • Q1 net income of $1.4B vs. $4B in Q1. Comprehensive income of $1.9B vs. $4.5B. Dividend obligation to Treasury will be $1.9B, bringing total cash dividends paid to $88.2B.
  • As noted in the past, the recent level of earnings is not sustainable over the long term, says Freddie Mac (OTCQB:FMCC).
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Comments (7)
  • DeepValueLover
    , contributor
    Comments (9547) | Send Message
    Can someone explain why (OTCQB:FMCC) shareholders are not entitled to these profits?
    7 Aug 2014, 10:12 AM Reply Like
  • Sungull01
    , contributor
    Comments (2) | Send Message
    Yes, it is very simple. When FMCC went bankrupt in 2008-2009, shareholders interest in the company was legally wiped out. When the US government stepped in and paid the billions to meet FMCC's obligations which the shareholders did not meet, the US government became the legal owner of the company and responsible/entitled to all losses/profits from that point forward. Thus the existing common stock is in my humble opinion, worthless.
    7 Aug 2014, 01:57 PM Reply Like
  • InTheTube
    , contributor
    Comments (102) | Send Message
    I'm sorry, but FMCC never went bankrupt, the company was never legally wiped out, the US Government did not directly pay billions in FMCC's obligations and the US Government never became the legal owner of the company, nor did they become the legal owner of all losses/profits from that point forward.


    Please do your homework (hint: read up on the Conservatorship, plenty of articles here on SA) before posting here, or go to the yahoo boards.
    8 Aug 2014, 05:05 AM Reply Like
  • InTheTube
    , contributor
    Comments (102) | Send Message
    The good people of Investors Unite, as well as several nice gentlemen with a Law Degree employed by Bruce Berkowitz are asking the exact same question.


    I don't expect this Soviet-style cash grab to last much longer though, plenty of lawsuits going the right way and the Treasury does not have a leg to stand on.


    In fact, with proven felony securities fraud committed by Treasury officials, I expect quite a few of them to spend a few years playing cards with Bernie Madoff at the end of all of this.
    7 Aug 2014, 10:29 AM Reply Like
  • philipmax
    , contributor
    Comments (303) | Send Message
    Here's another irritant to shareholders. Litigators, take notice!


    Treasury confiscates net income of the company as a "dividend", thereby, depriving the company of deducting this "tax" from its reported income and forcing Freddie to pay INCOME TAX on the Gross Net Income of an additional $700,000 Million. Total payoff to this blackmail $2.6 Trillion this quarter alone.


    This doesn't make sense, as banks and other institutions who had to pay "restitution" were able to effectively reduce the sting of such payment by deducting the fines from their reported income.


    There is a major crime being perpetrated here by the Treasury. This is a national tragedy unfolding before our very eyes.


    The very foundation of our capital system is being undermined!!!
    7 Aug 2014, 12:07 PM Reply Like
  • InTheTube
    , contributor
    Comments (102) | Send Message
    Excellent point, good Sir. Are you a shareholder?


    You might want to check out (and join) Investors Unite (and inform Tim Pagliara) or point this out to your friendly neighbourhood Hedge Fund types Mr. Ackman or Mr. Berkowitz.
    7 Aug 2014, 12:33 PM Reply Like
  • philipmax
    , contributor
    Comments (303) | Send Message
    In The Tube, Thanks.
    Correction on "total payout this quarter $2.6 Billion", not Trillion (yet).
    7 Aug 2014, 02:31 PM Reply Like
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