Quote:
Originally Posted by scrolls
Have you read much about how the Treasury Department changed the terms of their agreement in August of this year? Instead of paying a 10% dividend to the Treasury Department each quarter both companies now have to pay all profits to the department. They also are required to decrease their investment portfolios by 15% each year. I assumed this was a temporary thing until the bailout money is paid back, but what I've read it's to shrink both companies quicker to eventually shut them down.
Thanks I looked into quite a long time. I think all profits will go 10% as dividends and the remaining to pay back preferred. We will see next quarter. I don't think government is going to charge fnma 24% interest rates. But, you never know as it looks the banking buddies want fnma gone. I think banks got loans for 5% from the treasury for tarp, yet the bank that is suppose to be government backed pays 10%? They should rename Goldman sacs, Government Goldman Sacs., United States Chase Manhattan of Washington, and Wells government backed Fargo, Bank we would not be here without taking grandmas savings of America.
You are probably correct it is a bad stock. However, I do not understand the credit risk either. If interest rates double, are they in trouble? Seems the 15% is not bad as it will make them smaller. I am sure they are going to send all the junk to the fed. The banks will take the good stuff.
Still don't know what I bought but the fees won't make the sell worthwhile.
Last edited by steelhouse; 10-05-2012 at 02:39 AM.