In the second quarter Fannie Mae posted stunning earnings of $5.1 billion while its younger brother Freddie Mac earned $2.9 billion. Grand total: $8 billion in profits, which is a heck-of-a-lot better than what the White House and Congress are doing with the national budget each year. Yes, the two GSEs owe Treasury about $140 billion when you factor out how much the two have kicked back to Uncle Sam on its usurious dividends since 2008. But if you multiply $8 billion times four quarters that comes to $32 billion a year and then divide that by $140 billion you get 4.3 years. Might there be a real financial reason for having these two mortgage giants survive the hatchets of Obama and the GOP? It’s the summer and one can always dream.
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