Saturday, November 6, 2010

Fannie Mae Paid Treasury $2.1 billion Dividend, Asks for $2.5 billion

The AP reported, I assume with a straight face:

Government-controlled mortgage buyer Fannie Mae is asking for $2.5 billion in additional federal aid after posting a narrower loss in the third quarter.Fannie Mae said Friday it lost $3.46 billion, or 61 cents a share, in the July-September quarter. That takes into account $2.1 billion in dividend payments to the Treasury Department.
These machinations are intended to do what?  Make Treasury look better with a $2.1 billion collection, while another account, maybe from the Fed, shells out $2.5 billion.  Politicians can manipulate and hide money.  One can ask our newest National Security Adviser.  Tom Donilon covered for Fannie Mae, while profiting immensely.