Fannie Mae-No Politics (FNMA)

[Patswil]

They should return to shareholders the Gov don't know how to run FNMA
They are pretty dumb in business... the proof! And FNMA /FMCC gave them less dividends by cutting their losses instead of holding them to give more divs to the Gov.... Smart move!!!! Did you get the accounting trick they did... just read here to understand it better the reuter yahoo title "Fannie Mae's derivatives losses to curb U.S. Treasury payment""The derivatives losses helped reduce quarterly profit to $1.3 billion, about 80 percent less than a year earlier, and the $1.9 billion check that Fannie Mae will cut for the Treasury in March will be the smallest since the second quarter of 2010." So if they holded the losses or carried them to next year, they would have had to pay more to the treasury... and at the end of the day, they would have lost way more...Remenber they can't keep their profit... Nobody realized this trick yet??? Opinions welcomes!!!

reply------------
You are correct, both companies did this. The question now is, did the TSY demand this to make them look weak? Did the CEO's do this to restrict their payments and build a case for re-cap. It seems to me since the TSY cannot put the 5T MBS on the government balance sheet and if they screw up the 30yr mortgage every politician will feel the heat, they are helping orchestrate a recap scenario. For any recap, it will have to be a win/win for the executive branch and politico's. It's all about the rhetoric now. The big papers and some press (economist) are beginning to sniff around. They soon will start to uncover the stench if it continues.



http://finance.yahoo.com/mbview/threadview/?&bn=e0e2b58d-64fb-37a2-9273-29a5ce093d80&tid=1424474096201-1d22bea8-52bf-4430-87b1-8e5dd041e0dc&tls=la%2Cd%2C0%2C3