Fannie Mae-No Politics (FNMA)

[jacklanvo99]

Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) are higher for the second straight session following unsealed documents that some government officials new the company would be profitable before the decision to sweep all of the two companies profits.

Documents showed that Ex-Fannie Mae CFO, Susan McFarlan, told Treasury officials on August 9th, 2012, days before the change to the bailout terms, that it would be profitable for the foreseeable future. She also said that at some point in the not-so-distant future factors might exist whereby the allowance on the deferred tax asset would be released.

Investors of the preferred and common stock have sued the government, claiming some of these profits belong to shareholders.

FMCC is up 14.8% and FNMA is up 12.3%, after gaining 29% and 35%, respectively, on Tuesday.
http://www.streetinsider.com/Hedge+Funds/Fannie+Mae+(FNMA),+Freddie+Mac+(FMCC)+Gain+for+Second+Session+on+Hope+Trade/11498528.html