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Treasury Department US Secretary Steven Mnuchin said his government is currently trying to stop his profits. Fannie Mae and Freddie Mac.
Mr. Mnuchin explained that not only did President Donald Trump try to stop the sweeping of profits, but that he was looking to do it soon.
"We are actively negotiating an amendment to try to resolve it by the end of the month," Mnuchin said in an interview for CNBC's Squawk channel on Thursday.
And Cowen Washington Research Group send a note to customers telling them that the earnings sweep could end this month.
"We are planning an agreement before September 30th in which Fannie and Freddie will stop paying a quarterly dividend to Treasury," said Cowen CEO Jaret Seiberg. "Instead, they will pay a commission for the outstanding capital line outstanding. This means that they can keep the rest of their profits in order to replenish their capital. "
Freddie Mac repaid a total of $ 119.7 billion to the Treasury, surpassing by approximately $ 48.1 billion the amount originally raised during the financial crisis. Fannie Mae shot a total of $ 181.4 billion, up from $ 119.8 billion.
But now, profits should be swept away as GSE prepares to leave the conservative position. Because the profits were promulgated by a decree, Trump should be able to put an end to profits without waiting for legislative action.
Watch CNBC's full interview with CNBC's Treasury Secretary Steven Mnuchin.
Mnuchin also explained that Trump had already approved the Treasury plan to reform Fannie Mae and Freddie Mac.
During an appearance before the Senate Banking Committee on Tuesday, Mr. Mnuchin did not confirm whether Trump had approved the plan, but he confirmed it later.
On September 5, the Trump government released its long-awaited plan to reform the country's housing finance system and privatize Fannie Mae and Freddie Mac, calling it "the last unfinished business of the financial crisis."
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