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FNMA News from Bloomberg
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
FNMA News from Bloomberg
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
I agree. All of us here should tweet to their congressman or woman and let them know how we feel about $FNMA.
We can do this
Nice. FNMA is definitely going on another money run here soon
If everyone tweets to their favorite congressman or woman, FNMA may end up leaving the clutches of Big Brother and instead of paying billions in dividends to uncle sam, they can pay them to us common shareholders and do massive buy back of common too.
3-5 years for $100 PPS. FNMA should be above $5.00 by end of year and back trading on NYSE
FNMA move to $100 PPS is one that will take time but with the improvement in housing and the numbers increasing it is very possible some day.
Trix cross will send $FNMA flying IMO ~
CYBK strong accumulation continues ~
Big run ahead on filings and news !
Audited fins and S-1 will really move the PPS to new highs !
Very solid day. Higher lows are always a sign of a big move to the upside, $CYBK is setup for a nice gap filler to 10 cent land
Bannister is going to completely destroy anyone shorting $DUSS. The 20M shares on the bid must be frustrating as heck for shorts. I love it. We will continue stacking the bid. Not going to let shorts cover in the bid here ever, only on the ask. Too bad!
I agree with you. FNMA is not going anywhere and all of us shareholders will be do well here IMO, not just the preferred holders.
FNMA great news out today GET THE WORDS OUT
WOW BIG NEWS~Bloomberg: Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results,
Fannie Mae Profit May Swell Treasury Coffers as Debt Limit Looms
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae (FNMA) and Freddie Mac may send the Treasury Department enough money in June to extend by a month government operations under the debt ceiling, giving Republicans and Democrats more time to hammer out solutions to the nation’s finances.
The government-controlled mortgage financiers, under revisions last year to their bailout agreements, turn almost all of their profits over to the Treasury. They each say they have considered reversing about $90 billion of writedowns of tax credits, which would boost the remittances.
Fannie Mae is weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
FNMA great news out today GET THE WORDS OUT
WOW BIG NEWS~Bloomberg: Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results,
Fannie Mae Profit May Swell Treasury Coffers as Debt Limit Looms
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae (FNMA) and Freddie Mac may send the Treasury Department enough money in June to extend by a month government operations under the debt ceiling, giving Republicans and Democrats more time to hammer out solutions to the nation’s finances.
The government-controlled mortgage financiers, under revisions last year to their bailout agreements, turn almost all of their profits over to the Treasury. They each say they have considered reversing about $90 billion of writedowns of tax credits, which would boost the remittances.
Fannie Mae is weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
Bannister will only merge in a company that will enhance shareholder value for $DUSS. We are in great hands with her. Many of us keep in close contact with her
same here. looks like we are both on the same page.
Manipulators do not like stacked bids by the way and that is why we are stacking it. F them.
I own 1.5M shares. I am on the bid because the only way I am owning more shares is if someone sells them to me. I personally have enough shares and do not want to own anymore shares. If someone wants out, I will own them wholesale. I am done paying retail on the ask until I see audited financials and a REG A filing with the SEC.
To each his or her own. You want to hit the ask? Go for it. I own more than I want to own.
Cheers,
PC
Nice $WAFR Bid 1.5 cents = Very Bullish !
CYBK is going to GO POP on News and Filings coming IMO ~
Whomever is shorting and manipulating will have no choice
but to cover on the ask here !
FNMA NEWS CONFIRMED! FNMA q1 profit minimum $58.9 billion
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
FNMA NEWS CONFIRMED! FNMA q1 profit minimum $58.9 billion
By Jody Shenn & Ian Katz - Apr 8, 2013 1:03 PM ET
Fannie Mae signaled in its April 2 annual report it will realize $58.9 billion of the unusual gains in its first-quarter results, enough to fund Social Security payments for a month, according to Stone & McCarthy Research Associates’ Nancy Vanden Houten. After including Freddie Mac (FMCC)’s potential windfall and the $5 billion to $10 billion of regular income the analyst said they may post, their June payments could about equal the $100 billion by which former Treasury Secretary Timothy F. Geithner told Congress in December the U.S. debt grows on average each month.
“It could mean a pretty big chunk of cash for the Treasury at a time they need it,” said Vanden Houten, a senior government policy analyst at Princeton, New Jersey-based Stone & McCarthy. “I don’t have a strong feeling yet if we’re going to have a real nail-bitter of a debt-ceiling showdown, since I think there’s less appetite for it, but you can’t rule it out.”
Conservatorship
Fannie Mae and Freddie Mac, which were taken into U.S. conservatorships in 2008 and remain off the government’s balance sheet, are weighing writing up so-called deferred tax assets after returning to profitability, a development that means they could face the typical tax requirements of corporations.
Fannie Mae’s 2012 net income totaled $17.2 billion, compared with a loss of $16.9 billion in 2011. Freddie Mac earned $11 billion last year, versus a $5.3 billion loss. Under August revisions to their rescue agreements meant to reduce the odds the backstops could be eventually exhausted, the firms send the U.S. the amount by which their net worth after each quarter exceeds $3 billion, a threshold that falls to zero over time.
Andrew Wilson, a spokesman for Washington-based Fannie Mae, and Brad German, a spokesman for McLean, Virginia-based Freddie Mac, declined to comment, as did Denise Dunckel, a spokeswoman for their overseer, the Federal Housing Finance Agency.
Fannie Mae’s potential big earnings are “an accounting issue between the company, its auditors and its regulator,” Treasury spokesman Anthony Coleysaid in an e-mail.
Debt Limit
President Barack Obama in February signed legislation temporarily suspending the $16.4 trillion debt limit through May 18. The Treasury has said that after that date it can use so- called extraordinary measures to maintain borrowing ability.
Those steps should give the Treasury borrowing room until late August or early September, said Lou Crandall, chief economist at Wrightson Icap LLC in Jersey City, New Jersey.
Geithner, who has since been replaced by Jacob J. Lew, told lawmakers that “on average, the public debt of the United States is increasing by approximately $100 billion per month, although there are significant variations from month to month.”
In 2011, the Obama administration and Republicans debated for months before raising the debt ceiling in August of that year. Standard & Poor’s downgraded the U.S. three days later, citing political gridlock in Washington and the nation’s long- term fiscal challenges.
Extraordinary Measures
During the political stalemate, the U.S. staved off hitting the debt limit by about three months with measures including declaring a “debt-issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund. That allows the U.S. to redeem existing Treasury securities held by that fund as investments.
The debt of Fannie Mae and Freddie Mac, which the U.S. has pledged its backing to without officially guaranteeing, isn’t included in a tally of the U.S. government’s total. The firms, which mainly package mortgages from lenders into securities they guarantee, have drawn $187.5 billion from the Treasury since being seized, and sent back $65.2 billion in dividends.
Fannie Mae delayed its annual report last month, saying it was a close call whether it should take the step of writing up its deferred tax assets in the quarter ended Dec. 31. When finally making the filing, the company said two issues arguing against the move would no longer be true on March 31.
It will probably no longer have cumulative losses over the previous three years, and taking the step then won’t cause a $34 billion reduction in its remaining Treasury funding line, based on the details of its bailout, according to the filing.
Asset Sales
While Vanden Houten said the firms may use asset sales to come up with the money for any unusually large payments tied to the non-cash accounting gains, analysts at Deutsche Bank AG and FTN Financial say they probably will turn to the debt market, creating additions to their interest costs.
In January, Fannie Mae’s portfolio of liquid investments jumped by almost $28 billion, a sign it “may already have taken the first step toward raising longer debt for a Treasury payment,” Steven Abrahams, a New York-based Deutsche Bank analyst, wrote in an April 3 report.
Politicians may be in the middle of another debt ceiling fight when the money is sent over.
“Any time I’ve gotten too optimistic about these things being dealt with maturely, I end up having it blown back in my face,” Vanden Houten said.
To contact the reporters on this story: Jody Shenn in New York at jshenn@bloomberg.net; Ian Katz in Washington at ikatz2@bloomberg.net
To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; Alan Goldstein at agoldstein5@bloomberg.net
http://www.bloomberg.com/news/2013-04-08/fannie-mae-profit-may-swell-treasury-coffers-as-debt-limit-looms.html?cmpid=yhoo
FNMA ~ third the most profitable Financial Co. in 2012
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86553721
FNMA ~ third the most profitable Financial Co. in 2012
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86553721
Big week coming for $FNMA !
Word is spreading far and wide now !
FNMA made more profit then Bufett's Berkshire Hathaway last year
What was the most profitable insurance company last year? It wasn't Berkshire Hathaway. it was not American International Group. It is? Fannie Mae, the government-backed company that insures mortgages against default. Fannie made $17.2 billion last year, versus Berkshire Hathaway's $14.8 billion. Fannie was the third-most profitable financial firm in 2012, after JPMorgan Chase and Wells Fargo. But this year, Fannie's earnings could exceed even those of JPMorgan and Wells Fargo.
BERKSHIRE HATHAWAY 2012 NET PROFIT 14.8 BILLION DOLLARS.
http://www.google.ca/finance?q=NYSE%3ABRK.A&fstype=ii&ei=kxZiUeiBAqmmwAOAxgE
FNMA's NET PROFIT 17.2 BILLION DOLLARS IN 2012
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2012/q42012_release.pdf
FNMA made more profit then Bufett's Berkshire Hathaway last year
What was the most profitable insurance company last year? It wasn't Berkshire Hathaway. it was not American International Group. It is? Fannie Mae, the government-backed company that insures mortgages against default. Fannie made $17.2 billion last year, versus Berkshire Hathaway's $14.8 billion. Fannie was the third-most profitable financial firm in 2012, after JPMorgan Chase and Wells Fargo. But this year, Fannie's earnings could exceed even those of JPMorgan and Wells Fargo.
BERKSHIRE HATHAWAY 2012 NET PROFIT 14.8 BILLION DOLLARS.
http://www.google.ca/finance?q=NYSE%3ABRK.A&fstype=ii&ei=kxZiUeiBAqmmwAOAxgE
FNMA's NET PROFIT 17.2 BILLION DOLLARS IN 2012
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2012/q42012_release.pdf
CYBK TV/Radio Show from 04/03/2013
Huge Developments going on here !
CYBK TV/Radio Show from 04/03/2013
Huge Developments going on here !
If they post $60B this quarter. No brainer
I believe a company buy back of FNMA common is very possible. Cash dividends may not be too far off either !
Savvy investors and traders are loading $FNMA very heavy ~
Not going to take long for 10 cents plus. Days not weeks for $CYBK to get there IMO !
Not sure about audited fins by April 15th but from what others told me, the audited fins are under way for $CYBK
$FNMA “I had to pinch myself,” the former Treasury secretary said of his reaction to news that Washington-based Fannie Mae generated record profits last year. “I could hardly believe what I was reading.
http://mobile.bloomberg.com/news/2013-04-04/henry-paulson-says-fannie-mae-s-profits-shouldn-t-deter-overhaul.html
Chris confirmed to a few investors who called him that the audited fins are in progress nicely for $CYBK !
IPO is done. CYBK is focused revenues and profits as they should be. At the end of the day, increasing revenues and profits always win, ALWAYS !
Hundreds and hundreds of savvy investors and traders have been alerted to $FNMA ! Huge move coming to $3.00 plus any week now IMO ~
DUSS Rocks Period !
Bannister Rocks Period !
Shorts are Toast here Period !
CYBK Loading Zone opportunity coming to an end real soon. HUGE breakout coming from 3.6 cents to 7-8 cents plus !
FNMA~~ monster VIDEO analysis