The question sought to discover how you arrived at your figures in a practical sense. The figures themselves were not challenged. Also, there was a significant omission. A substantial percentage of the $187.5 billion drawn from the US Treasury by the GSEs was used exclusively to pay dividends to the US Treasury. Approximately $26 billion or 13.9% of the $187.5 billion was drawn solely to pay the 10% annual dividend to Treasury. This amount was described by the US Treasury as the circular draws to pay dividends and is one of the main reasons given as justification for the executing the third amendment.
This considerable amount was perhaps inadvertently omitted from the considerations presented in your post and this aroused my curiosity about how differential distributions into different categories presented was made.
This was not addressed in your response.
For example, The Acting FHFA Director DeMarco would request a US Treasury draw at the end of a quarter for Fannie and Freddie whenever he found that there was a negative net worth at the end of the quarter. The request to the US Treasury would be made at the end of the quarter and it would be paid by the end of the following quarter.
So, in the first quarter ending on March 31, 2010, DeMarco found that both Fannie and Freddie had net worth deficits of $-8.4 billion and $-10.5 billion respectively and requested US Treasury draws for $8.4 and $10.6 billion. These amounts were paid on June 30, 2010 to the GSEs.
Using these facts and the available financial records, briefly how did you or would you trace the distribution and use of the $8.4 billion and $10.6 billion US Treasury draws deposited to and used by Fannie Mae and Freddie Mac into different categories given previously that could only begin to be used during the 3rd Quarter 2010 fiscal period? The billions in Treasury draws were deposited. How does one determine how they were used during the quarter?
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