Fannie Mae Preferred S (FNMAS)

[jwnoble3]

GSEs make most of thier money from G-fees. Some from MBS and hedging activity. See slide 17 in the attached. TSY is only making Freddie sell off non-critical assets and will allow them to participate in the market at a later date and somewhat smaller size.

http://www.freddiemac.com/investors/pdffiles/investor-presentation.pdf

TSY is doing this for two reasons:

1. To open private competition (a secondary mortgage mkt), by making the GSEs sell off some patents and a great deal of proprietary info

2. Selling off the Assets will bring more $$ to TSY.