“I’m Paying You With Your Own Money,” Freddie KGB!

Yep, I’ve used this quote and theme before, as recently as  November, 2010 which was, coincidentally, the last time Freddie Mac reported earnings.  Try not to shake your head and bang your face on your desk as you read this, emphasis mine:

“Freddie Mac and Fannie Mae, the mortgage-finance companies operating under U.S. conservatorship, requested another $3.1 billion in Treasury Department aid as they reported quarterly earnings reflecting improving health.

Fannie Mae reported net income of $73 million for the three-month period that ended Dec. 31, the Washington-based company’s first positive results in three years. McLean, Virginia-based Freddie Mac’s quarterly loss narrowed to $113 million from $6.5 billion in the same period a year earlier.

Both companies reported net-worth deficits attributable largely to the quarterly dividend payments they make to the Treasury Department, which has owned more than 79 percent of both companies since they were seized and placed under U.S. conservatorship during the credit crisis in 2008.

The government-sponsored enterprises, which own or guarantee more than half of U.S. mortgages, have been sustained by $154 billion in Treasury funds since the takeover. More than $20 billion of that money has been paid back to taxpayers in the form of a 10 percent dividend on the shares owned by Treasury.

Oy vey.  Nothing left to do but quote Teddy KGB: “It’s a fucking joke anyway. After all, I’m paying you with YOUR money.”

 

Thankfully, Freddie Mac didn’t add, “I’m still up several hundred billion from this last time I stick it in you!”

-KD

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