Fannie Mae-No Politics (FNMA)

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It would have to be Chocolate...hugs are only redeemable on people with feelings.

But seriously, this is taken verbatim from page 2 of Fannie's annual report:

"Fannie Mae has operated under the conservatorship of the Federal Housing Finance Agency (“FHFA”)
since September 6, 2008. The funding the company has received under the senior preferred stock purchase agreement with the U.S. Treasury has provided the company with the capital and liquidity needed to maintain its ability to fulfill its mission of providing liquidity and support to the nation’s housing finance markets and to avoid a trigger of mandatory receivership under the Federal Housing Finance Regulatory Reform Act of 2008. Through March 31, 2013, Fannie Mae has requested cumulative draws totaling $116.1 billion. Under the senior preferred stock purchase agreement, the payment of dividends cannot be used to offset prior Treasury draws. Accordingly, while Fannie Mae has paid $35.6 billion in dividends to Treasury, Treasury still maintains a liquidation preference of $117.1 billion on the company’s senior preferred stock."

Clearly these rules were written when Fannie wasn't churning any profit. Since then, the feds have just been skimming the rather large profits into their piggy bank without giving Fannie any credit.