Freddie Mac profit moves U.S. housing bailout further into black
Freddie Mac (FMCC) said on Thursday it will soon send the U.S. Treasury a $10.4 billion dividend after posting a ninth straight quarterly profit, putting taxpayers further into the black on their bailout of the mortgage giant.
When it makes the payment next month, Freddie Mac will have paid about $81.8 billion in dividends in return for the $71.3 billion in support it received from the Treasury when it was bailed out during the financial crisis. Freddie Mac and sibling company Fannie Mae (FNMA) have operated under federal conservatorship since 2008.
The duo, which had been teetering on the brink of insolvency, must now turn over any profits to the Treasury as dividends on the controlling stake the government took when it bailed them out.