FRBNY: Fannie and Freddie have not yet repaid bailout

• Treasury's investment in the mortgage giants is entitled to a "substantial risk premium," argues a new paper from the New York Fed, thus justifying payments well in excess of the nominal bailout amount.
• Fannie Mae received $116.1B and has repaid $134.5B; Freddie received $71.3B and has repaid $91B, reports John Carney.
• What's more, the government backstop has lowered funding costs for Fannie (OTCQB:FNMA -1.6%) and Freddie (OTCQB:FMCC -1%), thus boosting profits for the two. The government has also never forced payment of the commitment fee the GSEs promised to pay in exchange for Treasury's commitment to continue providing emergency funding.
• Instead of being returned to control of shareholders, the two should be wound down, concludes the paper, which calls the failure to do so a "colossal missed opportunity to put U.S. residential mortgage finance on a more stable long-term footing."