Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has been returning a whole lot more to the tax payers than it received as part of the bailout. Needless to state, the returns are not doing any good to the stock of the company, which continues to fluctuate and is stuck on the OTCBB. The company recently announced its smallest dividend to the taxpayers to date, worth $1.8 billion.
The bailout received in 2008 from the government stood at $116 billion, but under harsh conditions. The agreement stated that FNMA would return all of its profits to the treasury for an indefinite period. To date, the company has returned a total of $138 billion, recording a profit of $22 billion for the taxpayers. Unfortunately, after huge returns, the government still does not want to let FNMA go.
Consequently, the stock and the shareholders continue to suffer, the once mighty Mortgage corp. now has nothing to offer to its shareholders. The only thing that was able to save the company from a total crash was the pending lawsuits against the government, from the shareholders. A dozen of these lawsuits are still pending and investors hope that either one or more of the filings is able to move a court to force the government to let FNMA go.
The shareholders received some encouragement from the government, which is now considering a new bill regarding FNMA. As per the new law, all dividends will be held in an escrow account, rather than going to the treasury. Investors are seeing this move as a sign that they may someday get all their deserved shares from the company in bulk. FNMA has tried to make it more profitable over the years, but investors remain undeterred by any progress by the company. Unless the government lets FNMA trade freely as a public company, there is little that can be done to gain investor interest.
Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) fell by $0.03, recording a 1.15% decline, to close at $2.57 on the May 28th session, which saw 1.16 billion shares change hands.