FINANCIAL TIMES: Fannie Mae earned a record net income of $17.2bn in 2012 as the recipient of the biggest bailout in US history returned to sustained and substantial profit.
The housing finance agency, which was taken into government conservatorship during the financial crisis, paid out dividends of $11.6bn to the US Treasury during the year. In 2011, it made a loss of $16.9bn and drew money from the Treasury…
The turnround in housing was clear as fewer households fell behind on their mortgage payments during 2012, reducing Fannie’s credit losses, with the delinquency rate down to 3.3 per cent by the end of the year compared with 5.5 per cent in March 2010… (more)
EDITOR: Who would have believed? In business, the ability to survive through hard times is often the difference between success and failure. The government threw life lines to Fannie Mae, General Motors, Citi Bank and others. And they pulled through.
