GSE's Fake Accounting, Part II

[CrusaderFrank]

I read with interest a recent article that Fannie had repaying $50+Billion of TARP money this past quarter, it sounded, overly optimistic but I had other items to tend to so I dropped it until tonight. I took another look and Fannie and Freddie are back up to their old tricks.

"Fannie Mae announced on May 9 that it would pay the Treasury a second-quarter dividend of $59.5 billion."

Don't Buy Fannie Mae Or Freddie Mac - Seeking Alpha

Sounds great right?

"The agency also said it expects to release the valuation allowance on its deferred tax asset as early as the first quarter of 2013. Fannie Mae had a valuation allowance of $58.9 billion as of Dec. 31, 2012."

http://finance.yahoo.com/news/total-fantasy-fannie-freddie-preferreds-100000155.html

The Valuation allowance is not a cash payment.

Further, the amounts paid have been sent to Treasury and have NOT reduced GSE debts.

Amazing, no?

 

[CrusaderFrank]

Warren Buffett sold all his F/F stock in 2000 for a $3B profit.

There's no way in hell that they're making $180B in 2 years

And no one in the media or press seems evern remotely curious