Fannie Mae sending another $1.9B to taxpayers
Feb 20, 2015, 10:29am EST
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FANNIE MAE PROFIT Enlarge Photo
Andrew Harrer/Bloomberg
Fannie Mae posted its 12th consecutive quarterly profit and will pay the U.S. Treasury another $1.9 billion in dividends as part of its government rescue.
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Jeff Clabaugh
Broadcast/Web Reporter-
Washington Business Journal
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Fannie Mae will send another $1.9 billion to the U.S. Treasury as part of its government bailout after posting its 12th consecutive quarterly profit last quarter.
Fannie Mae had net income of $1.4 billion in the fourth quarter, down from a $3.9 billion profit in the same quarter a year ago. The decline was due to accounting for tax credits a year earlier.
For all of 2014, Fannie Mae’s net income was $14.2 billion, compared to $84 billion in 2013, which included the company’s valuation allowance against deferred tax credits.
Fannie Mae (OTC: FNMA), which is required to return all profits to the Treasury as dividend payments on its bailout loan, paid a total of $20.6 billion in dividends to the Treasury in 2014. With its latest payment, due in March, it will have paid $136.4 billion in dividends to taxpayers, more than the $116.1 billion it received in its 2008 bailout.
Dividend payments do not reduce the government’s stake in Fannie Mae it holds in exchange for its rescue.
Jeff Clabaugh covers general assignment and provides business coverage for WTOP.
Industries: Banking & Financial Services, Commercial Real Estate