Fannie Mae Preferred S (FNMAS)

[CatBirdSeat]

Why is the Fed passing profits to Treasury?

Haven't you ever thought that those profits are being passed to the Treasury to pay off the net investment for Fannie Mae and Freddie Mac? The government doesn't practice accounting in a logical or even ethical manner like the private world,.. now do they.

It has been stated that the government does not be want to be the only game in town for the secondary mortgage market. I would think (or hope) that they want to close the book on conservatorship sooner, rather than later. It would mark an historical end to the crisis.

I just don't buy it that the Feds are buying the GSE portfolio just to help keep rates low,... theres more to it. There usual is...

The current balance of the net investment could be even smaller than most of us think, now with QE3 in full swing.