Timothy Mayopoulos
Fannie Mae will pay the Treasury Department $58.7 billion in dividends by the end of June, Forbes reported.
The mortgage finance firm recorded $8.1 billion in pre-tax income in the first quarter. Its payment to the feds is enabled by a $50.6 billion valuation allowance on deferred tax assets, the magazine said. Then, the total dividends reimbursing the Treasury for the 2008 bailout will hit $95 billion. Yesterday, Freddie Mac reported a quarterly net income of $4.6 billion and owes a $7 billion dividend to the Treasury. No valuation allowance was announced, Forbes said.
“I think there is a risk policymakers might look at our profitability and conclude they don’t need to take action with respect to housing finance reform,” said Fannie CEO Timothy Mayopoulos on a conference call. “I think that would be a mistake.” [Forbes] –Mark Maurer