Wednesday, April 3, 2013

Fannie Mae Record Profit


Mortgage financing giant Fannie Mae Tuesday reported a record profit of $17.2 billion 

Just four years ago, the government had to step in and take control of Fannie Mae  
I thought the government couldn’t run any thing right?  I thought only the private sector can run things.  So the private sector ran it into the ground and the government fixed it.  Interesting… 
Fannie Mae is poised to pay tens of billions of dollars in additional dividends to the U.S. Treasury, perhaps as soon as this quarter, in what could turn out to be its largest repayment to date. The government has pumped in $116 billion in bailout 
The 2012 profit was more than twice the company's previous record of $8.1 billion in 2003,  
Fannie's $7.6 billion profit in the final three months of the year also represented its best quarter on record. 
Fannie pays dividends to the Treasury on shares that the government owns. Dividend payments totaled $11.6 billion in 2012 and $4 billion so far in 2013, bringing the total of its Treasury payments to $35.6 billion. 
So lets do the math.  The government pumped in 116 Billion.  The company paid back 35 Billion.  As far as I can tell they have a long long way to go.

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