Fannie Mae Net Revenue in the Billions
Since the housing bubble burst, federally-controlled mortgage buyer Fannie Mae
(FNMA) and biggest burden on U.S. taxpayers, recorded its first annual profit ,
according to filings released on Tuesday. Fannie reported net income of $17.2
billion for 2012, compared with a loss of $16.9 billion in 2011. During 2012
Fannie paid the U.S. Department of the Treasury $11.6 billion in senior
preferred stock dividends. Fannie has drawn a cumulative $116.1 billion from
U.S. Treasury and made $31.4 billion in senior preferred stock dividend payments
since entering conservatorship on Sept. 6, 2008. Net revenue, which includes
items such as guaranty fees, rose to $23 billion in 2012 from $20.4 billion in
2011. An announcement from Fannie regarding the profit, “This change was driven
by improvement in the profile of our single-family book of business due to
continuing positive trends in the housing market and our ongoing efforts to
improve the credit quality of our single-family guaranty book of business.” At
the end of 2012, serious delinquency rate for single-family loans reached 3.29%
compared to 3.91% in same period for 2011. “As a result of increases in our
charged guaranty fee and the larger volume of single-family loans we acquired in
2012, we expect to receive significantly more guaranty fee income on the
single-family loans we acquired in 2012, over their lifetime, than on the
single-family loans we acquired in 2011,” according to a statement from Fannie
March U.S. sales for automakers was released Tuesday:
Chrysler Group LLC, owned by Fiat SpA: 171,606 units; Year-over-year sales gains
led by a 24% jump for the Ram Truck brand.
Ford Motor Co. (F): 236,160 units; Passenger cars 84,611 units; Utility vehicles
68,548; Trucks 83,001; Fusion was best selling unit with 30,284 units; F-series
trucks 67,513 units.
General Motors Co. (GM): 245,950 units; retail sales 178,989; Chevrolet brand
173,859 units; Cadillac brand 15,751 units.
Toyota Motor Corp. (TM): 205,342 units.
Michael Sarris, finance minister for Cyprus as well as a lead player in talks
with International Monetary Fund and European Union lenders, resigned on
Tuesday, saying he completed his task and remains under scrutiny in an
investigation into the crisis. His resignation comes after concluding a 10
billion euro bailout deal with international lenders in which Cyprus slashed its
dominant banking sector and slammed depositors with losses. "I believe that in
order to facilitate the work of (investigators) the right thing would be to
place my resignation at the disposal of the president of the republic, which I
did," said Sarris. Harris Georgiades, who has held the labor ministry post in
Anastasiades's four-week administration will replace Sarris. The deal needs
ratification from national EU parliaments and euro zone finance ministers.
Christos Stylianides, Cyprus's government spokesman said, "This is a very
important development which ends a very long period of uncertainty." Sarris said
it was not clear when the remaining capital controls would be lifted, "We would
want to ease restrictions the soonest possible, but also have to ensure that
stability (in the banking system) prevails." A finance ministry decree on
Tuesday, the third since controls were first introduced, raised the ceiling on
transactions which do not require central bank approval to 25,000 euros from
5,000 euros. It also permits the use of checks worth up to 9,000 euros per
month. A 300 euro per day cash withdrawal limit as well as a 1,000 euro limit on
the amount travelers can take overseas, remain in place. Cypriot officials
reported that it could take up to a month for restrictions to be fully removed
regardless of the decree signed by Sarris and dated April 2 which is valid for
only two days. Cyprus depositors have been forced into accepting massive losses
on uninsured deposits of more than 100,000 euros. The 'bail-in' sees 37.5% of
deposits exceeding 100,000 euros converted into equity in the bank, and an
additional 22.5% used as a buffer which could also be converted into equity if
circumstances warrant it. A small portion of the remaining 40% of uninsured
deposits effectively frozen under the arrangement, 10% will be unblocked per a
deal negotiated Tuesday morning.
U.S. Commerce Department reported Tuesday that orders for goods produced in U.S.
factories rose 3% in February to mark the biggest gain in five months, mainly
because of increased orders for aircraft. Durable goods orders rose 5.6% in
February. Non-durable goods orders rose 0.8%. Durable goods are those meant to
last at least three years. Non-durable goods include food and clothing. Factory
goods shipped in February rose by 1.0%.
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