二房或许还真能活过来# Stock
V*2
1 楼
Federal National Mortgage Association : Fannie Will Make $59.4 Billion
Payment to U.S.
By Nick Timiraos
Fannie Mae said Thursday that it would make a $59.4 billion payment to the U
.S. Treasury next month after reporting a $58.7 billion first-quarter profit
thanks to a big tax benefit the bailed-out mortgage-finance company booked
after determining it would generate profits in the coming years.
Fannie recognized $50.6 billion in tax benefits during the first quarter, in
addition to pretax income of $8.1 billion during the period. That compared
with a $2.7 billion gain during the year-earlier period.
"I'm pleased to say that we'll be sending a lot of money to the taxpayers,"
said Fannie Chief Executive Timothy Mayopoulos in a speech to an industry
group on Thursday morning.
The government took over Fannie and its smaller sibling, Freddie Mac, nearly
five years ago and agreed to inject vast sums to keep the firms afloat in
order to stave off a deep freeze in U.S. mortgage markets. In exchange, the
government took senior preferred shares in the companies that paid a
dividend of 10% until this year, when nearly all of the firms' profits are
swept away as a dividend payment.
Fannie's expected payment of $59.4 billion to the U.S. Treasury will bring
to $95 billion the amount of dividends it has paid to the Treasury. It has
received $116.1 billion in aid, leaving the net cost of its bailout at
around $21.1 billion. Freddie said on Wednesday that it would pay $7 billion
in dividends by next month, bringing its total dividends paid to $36.6
billion. It has received $71.3 billion in aid, leaving its net cost at $34.7
billion.
Taken together, the cost of the government rescues will be cut in half next
month, to around $60 billion, from $120 billion at the end of March. "This
is obviously very good news for all of us as taxpayers," Mr. Mayopoulos said
.
But the terms of the government's support of Fannie and Freddie don't
actually provide a mechanism for the firms to redeem the government's shares
in the firms. In that sense, Fannie and Freddie are simply making payments
on a loan that can't ever be paid off.
If the profits of recent periods are sustained, Fannie could return more
money to the Treasury than it has borrowed in less than a year.
Mr. Mayopoulos said he was concerned that Fannie's return to profitability--
even without the tax boost, the first-quarter pre-tax income was its largest
quarterly profit ever and marked the fifth straight quarterly profit for
Fannie--might induce policy makers to shirk from taking any action soon to
determine the future of the company and the nation's broader $10 trillion
mortgage market. "The payment of these dividends is not putting private
capital in front of the government's current backing of the market," he said
.
Fannie's tax boost stemmed from reversing write-downs of its deferred-tax
assets, which are unused tax credits and deductions that can offset future
tax bills but which are worthless if a company isn't expected to turn a
profit and have taxable income.
The mortgage-finance company began writing down the tax benefits in 2008 as
rising mortgage defaults threatened to wipe out thin capital reserves. Some
assets had also counted toward the company's capital, further squeezing the
company as the financial crisis deepened.
The turnaround at Fannie is the latest sign of how a broad housing-market
rebound has lifted the financial sector, the broader economy and the firms'
fortunes.
Fannie reclaimed the deferred-tax assets during the first quarter because
the company concluded it is likely to be profitable for the foreseeable
future. Fannie reported annual losses of $58.7 billion in 2008 and $72
billion in 2009. Last year, by contrast, it reported a $17.2 billion profit,
the company's first since 2006.
Write to Nick Timiraos at N***********[email protected]
Payment to U.S.
By Nick Timiraos
Fannie Mae said Thursday that it would make a $59.4 billion payment to the U
.S. Treasury next month after reporting a $58.7 billion first-quarter profit
thanks to a big tax benefit the bailed-out mortgage-finance company booked
after determining it would generate profits in the coming years.
Fannie recognized $50.6 billion in tax benefits during the first quarter, in
addition to pretax income of $8.1 billion during the period. That compared
with a $2.7 billion gain during the year-earlier period.
"I'm pleased to say that we'll be sending a lot of money to the taxpayers,"
said Fannie Chief Executive Timothy Mayopoulos in a speech to an industry
group on Thursday morning.
The government took over Fannie and its smaller sibling, Freddie Mac, nearly
five years ago and agreed to inject vast sums to keep the firms afloat in
order to stave off a deep freeze in U.S. mortgage markets. In exchange, the
government took senior preferred shares in the companies that paid a
dividend of 10% until this year, when nearly all of the firms' profits are
swept away as a dividend payment.
Fannie's expected payment of $59.4 billion to the U.S. Treasury will bring
to $95 billion the amount of dividends it has paid to the Treasury. It has
received $116.1 billion in aid, leaving the net cost of its bailout at
around $21.1 billion. Freddie said on Wednesday that it would pay $7 billion
in dividends by next month, bringing its total dividends paid to $36.6
billion. It has received $71.3 billion in aid, leaving its net cost at $34.7
billion.
Taken together, the cost of the government rescues will be cut in half next
month, to around $60 billion, from $120 billion at the end of March. "This
is obviously very good news for all of us as taxpayers," Mr. Mayopoulos said
.
But the terms of the government's support of Fannie and Freddie don't
actually provide a mechanism for the firms to redeem the government's shares
in the firms. In that sense, Fannie and Freddie are simply making payments
on a loan that can't ever be paid off.
If the profits of recent periods are sustained, Fannie could return more
money to the Treasury than it has borrowed in less than a year.
Mr. Mayopoulos said he was concerned that Fannie's return to profitability--
even without the tax boost, the first-quarter pre-tax income was its largest
quarterly profit ever and marked the fifth straight quarterly profit for
Fannie--might induce policy makers to shirk from taking any action soon to
determine the future of the company and the nation's broader $10 trillion
mortgage market. "The payment of these dividends is not putting private
capital in front of the government's current backing of the market," he said
.
Fannie's tax boost stemmed from reversing write-downs of its deferred-tax
assets, which are unused tax credits and deductions that can offset future
tax bills but which are worthless if a company isn't expected to turn a
profit and have taxable income.
The mortgage-finance company began writing down the tax benefits in 2008 as
rising mortgage defaults threatened to wipe out thin capital reserves. Some
assets had also counted toward the company's capital, further squeezing the
company as the financial crisis deepened.
The turnaround at Fannie is the latest sign of how a broad housing-market
rebound has lifted the financial sector, the broader economy and the firms'
fortunes.
Fannie reclaimed the deferred-tax assets during the first quarter because
the company concluded it is likely to be profitable for the foreseeable
future. Fannie reported annual losses of $58.7 billion in 2008 and $72
billion in 2009. Last year, by contrast, it reported a $17.2 billion profit,
the company's first since 2006.
Write to Nick Timiraos at N***********[email protected]
