Fannie Freddie

fannie and freddie_1In 9/08, the government took over Fannie and Freddie after investing $116 billion and $71.5 billion in them respectively. In exchange, the government initially took a 10% dividend on bailout monies and since 2012, against stockholders wishes, has been taking all profits. In 2015, Fannie earned $10.3 billion, Freddie $5.5 billion, dividend rates of 8.9% and 7.7% respectively, significantly less than the 10% dividend, rendering common stock in both worthless.

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