Fannie Mae-No Politics (FNMA)

[mikar]

From the Seeking-Alpha article:
"In November, however, Treasury amended the terms of the senior preferred stock agreement, which eliminated the 10% dividend requirement, but instituted a complete dividend sweep of any profits the companies may have, eliminating the companies' ability to retain their earnings and making it impossible to pay back the bailout funds. So even if Fannie and Freddie are able to reclaim the total amounts of their deferred tax assets - $61.5 billion for Fannie and $31.7 billion for Freddie - there is nothing this author can see to keep Treasury from sweeping these amounts into its coffers as dividends without applying it to the debt owed."