Jack Lew Has A New $4.4 Billion To Roll Around In

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The Treasury's new "we take everything" policy on Fannie Mae and Freddie Mac is really paying off, as long as the courts allow it to keep it.

Freddie Mac reported a $5 billion profit during the second quarter, the second-largest quarterly profit in the company's history and the latest reminder of how surging profits at Freddie and its larger sibling, Fannie Mae, could reshape the debate over the firms' futures….

Freddie said it will make a $4.4 billion dividend payment to the U.S. Treasury.

While the company isn't allowed to pay off the $71 billion in bailout money it received beginning five years ago, the latest payment will bring to $41 billion the amount of dividends it will have returned to the Treasury, leaving its net cost to taxpayers at around $30 billion.

At the current pace, Freddie stands to pay back more in dividends than it has drawn by early 2015. The company also has yet to claim certain tax benefits worth as much as $29 billion that could lead to a large one-time payment to the Treasury. Mr. Layton said that if recent positive trends continued, the company could reverse the write-downs of those tax assets over the next two quarters.

Freddie Mac Logs $5 Billion Profit [WSJ]

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