DigitalOlympus.com Comments on BBC News Article on Fannie Mae's Decision to Pay $59.4bn Back to U.S. After Record Profit
Online, June 3, 2013 (Newswire.com) - A recent [url.http://www.bbc.co.uk/news/business-22475856]BBC News[/url] Business article highlighted Fannie Mae's resolution to pay $59.4bn (£38.5bn) in dividends to the United States Treasury, after announcing an all-time net profit record of $58.7bn in the First Quarter of 2013.
On May 10, popular news blog DigitalOlympus.com commented on this situation as a possible strategy intended to show, through transparency, that this company remains a dominant force in the mortgage market.
According to the BBC News Business piece, Fannie Mae, as well as sibling housing-finance firm Freddie Mac, had to be rescued by the government at the peak of their financial crisis in 2008. During that period, Fannie collected tax benefits to cover losses on the bad loans and mortgages it had purchased.
The BBC News Business article further revealed that, "After evaluating the recoverability of Fannie Mae's deferred tax assets, as of March 31, 2013, the company determined that the factors in favor of releasing the allowance outweighed the factors in favor of maintaining it."
In response to the BBC News article, DigitalOlympus.com leading business intelligence researcher Josh Cole considered that Fannie Mae's decision to pay back $59.4bn in dividends to the United States Treasury -based on the company's due diligence investigations conducted to know the state of their assets- is a necessary step in the right direction that not only reflects transparency and accountability, but also shows that this organization continues to be the biggest mortgage finance company in America.
In a statement following the report, Cole stated that "Fannie Mae's decision to pay the U.S. Treasury will go a long way in improving the company's reputation. In fact, since both Fannie Mae and Freddie Mac have decided to pay back a considerable amount of money after conducting a thorough asset search, this situation could be perceived as an indication that mortgage finance is still a profitable business."
As a leading news and technology blog, DigitalOlympus.com is committed to promoting the adoption asset search and other measures to analytically determine the best possible business moves for optimum returns on investment. Fannie Mae's decision can be viewed as a relevant example of how due diligence investigations and activities like an asset search can be used to positively affect public opinion.
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