Fannie Mae profits push taxpayers into black on housing bailout
WASHINGTON Feb 21 (Reuters) - Fannie Mae said on Friday it would soon send the U.S. Treasury $7.2 billion, a profit-related dividend that makes taxpayers whole for the 2008 bailout of the mortgage-finance giant and its sibling company Freddie Mac.
But unlike other companies rescued by taxpayers during the financial crisis, the firms will remain under government control until Congress winds them down or replaces them.
Fannie Mae's and Freddie Mac's bailout terms force them both to turn over their profits to the Treasury as dividends on the controlling stake the government took when it bailed them out. They cannot repurchase the government's share.
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