Treasury Reportedly Made $25 Billion Profit On Mortgage Bond Sales

Posted by Orb Staff on March 19, 2012 No Comments
Categories : Residential Mortgage

11125_money_rain Treasury Reportedly Made $25 Billion Profit On Mortgage Bond Sales The U.S. Treasury Department has reportedly made a $25 billion profit on its sale of mortgage-backed securities from Fannie Mae and Freddie Mac.

Bloomberg News, citing an unidentified Treasury official, reports that the profit comes as the department is exiting the rescue programs that were created in the aftermath of the 2008 economic crash. The Treasury purchased $225 billion in government-sponsored enterprise mortgage bonds between September 2008 and December 2009, and it announced in March 2011 that it would begin to sell off its holdings for as much as $10 billion per month.

The Treasury official quoted by Bloomberg says that the department ultimately earned $250 billion in mortgage-bond sales, thus making a $25 billion profit from its original $225 billion purchase. The department is expected to officially announce the completion of its sale later today.

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