As is well-known by now, one of the main reasons why the Fed's hands are tied when it comes to the future of QE, is the dramatic drop in the US budget deficit which cuts down on the amount of monetizable gross issuance (read Treasurys) and for which a big reason is that the GSEs have shifted from net uses of government cash to net sources.
Bank of America Corporation (BAC), the second largest bank in the US in terms of total assets, agreed to settle with the Federal Housing Finance Agency (FHFA) – which regulates the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC) – for $9.5 billion over a dispute regarding risky mortgage securities sold to Fannie Mae and Fre
Taxpayers are already on the hook for $180 billion in losses at Fannie Mae and Freddie Mac. That number is going to rise, perhaps significantly.
The clever synonym for more taxpayer losses is "treasury Advance". With that understanding, please consider Fannie Mae's Losses Narrow but Treasury Advance Requested.
Another bonus battle flared up today as a key lawmaker and government-controlled mortgage giant, Fannie Mae, crossed swords over the controversial money awards.
Fannie Mae's chief executive sent employees an e-mail message defending the company's bonus program while Representative Barney Frank, Democrat of Massachusetts, countered with a demand that such bonuses be completely scrapped.