Fannie Mae-No Politics (FNMA)

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The squeeze is on. New tax plan could force another draw on Treasury. My bet is Watt, Mnuchin, et al won't allow that to happen.

Bloomberg - last Friday

Fannie-Freddie Keep Giving Profits to U.S. Amid Talks on Changes


FHFA’s Watt says he’s talking with Treasury on capital buffers


Companies’ profitability could be threatened by new tax plan

Fannie Mae and Freddie Mac may one day stop paying billions of dollars in dividends to the U.S. government. But not today.


The mortgage-finance giants paid a combined $5.1 billion to the U.S. Treasury on Friday, extending for another quarter the government’s controversial sweep of their profits. The latest payments bring the total turned over since 2008 to nearly $276 billion, according to their regulator, the Federal Housing Finance Agency.


There could be change in the offing, however. FHFA Director Mel Watt said in a letter to lawmakers on Friday that he’s working with Treasury on alternatives for the two companies, whose capital buffers are being wound down under the terms of their taxpayer bailouts.