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Fannie Mae posts $3.9B profit in 3Q
Associated Press (AP)
11/06/2014

WASHINGTON (AP) — Mortgage giant Fannie Mae is reporting net income of $3.9 billion for the July through September period.

It was the 11th straight profitable quarter for the government-controlled company. But the third-quarter profit was down 55 percent from $8.7 billion a year earlier.

Earnings for Fannie and its smaller sibling Freddie Mac can fluctuate widely due to changes in interest rates and home prices.

Washington-based Fannie also said it will pay a dividend of $4 billion to the U.S. Treasury next month. With its previous payments totaling $134.5 billion, Fannie has more than fully repaid the $116 billion it received from taxpayers.

The government rescued Fannie and Freddie in September 2008 at the height of the financial crisis.
 

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Does that include the cost of the debt accumulated by the government in saving them? Or the cost of government services and actions? The cost of the court actions? Paying off a debt that was financed by accumulating debt somewhere else leaves a lot of collateral loss.
I know that it does not include the loss to me in the artifical suppression of interest rates that allowed them to get bailed out and make a profit.

There are still more shoes to drop in this process. The worst being the point at which interest rates have to rise and there is all this money out there tied up at 3% for decades.
 

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Does that include the cost of the debt accumulated by the government in saving them? Or the cost of government services and actions? The cost of the court actions? Paying off a debt that was financed by accumulating debt somewhere else leaves a lot of collateral loss.
I know that it does not include the loss to me in the artifical suppression of interest rates that allowed them to get bailed out and make a profit.

There are still more shoes to drop in this process. The worst being the point at which interest rates have to rise and there is all this money out there tied up at 3% for decades.
I understand your anger. Keep in mind the Fannie/Freddie bailout came before any QE.
 

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But they will suffer and the government will be paying for that suffering when interest rates rise. When your portfolio contants 90% of loans paying 3%, and your cost of business goes up to 5%, you have real trouble finding money to make new loans while you still have to service the old loans. It is a head ache being passed continuously to everyone not enjoying the low interest loan. And that is mostly an advantage to the big borrowers of the world.
 
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Does that include the cost of the debt accumulated by the government in saving them? Or the cost of government services and actions? The cost of the court actions? Paying off a debt that was financed by accumulating debt somewhere else leaves a lot of collateral loss.
I know that it does not include the loss to me in the artifical suppression of interest rates that allowed them to get bailed out and make a profit.

There are still more shoes to drop in this process. The worst being the point at which interest rates have to rise and there is all this money out there tied up at 3% for decades.
LMAO

Would you be happier, if we just let them collapse and let the "free market" decide ?

Together, the two companies back around $5 trillion in mortgages, almost half of the entire US housing industry.
How much would that eventually cost taxpayers?

http://www.totalbankruptcy.com/news...nie-mae-and-freddie-mac-financial-crisis.aspx
 
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