Will Freddie Mac Require Another Draw from Treasury?
DSnews - March 16, 2015 - March 17, 2015
DSnews, By Brian Honea
In light of the substantial decline in profitability of both Fannie Mae and Freddie Mac for 2014, Urban Institute senior fellow Jim Parrott, a former economic adviser to President Obama, examined the likelihood of Freddie Mac making another draw from the U.S. Department of Treasury in a research brief published Monday entitled “What to Make of the Dramatic Fall in GSE Profits.”
A hugely profitable year in 2013 for both Fannie Mae ($84 billion) and Freddie Mac ($49 billion) shifted widespread speculation from winding down the two GSEs to instead ending FHFA’s conservatorship of the two Enterprises, which began in September 2008 after the two received a combined $188 billion from Treasury in bailout funds.
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