Fannie Mae and Freddie Mac: Borrowing and Payments to Treasury

In September 2008 Fannie Mae and Freddie Mac were placed under the Conservatorship of the Federal Housing Finance Agency.  At the time, they owned around $3.4 trillion in mortgage backed securities and $1.6 trillion in debt.  In return for $100 billion (later $200 billion) in capital investments guarantees, the U.S. Treasury received $1 billion in senior preferred stock with a 10% coupon (later changed to sweep all of Mae and Mac's profits).

How bad a deal was this for U.S. taxpayers?  We know that the Maiden Lane I and II transactions (the bailout of AIG) ended up making money for the Treasury and Federal Reserve Bank (while the Treasury is still $24.2 billion in the hole, it owns 53% of the stock of a company with a market cap of $71 billion).  How much did the bailouts of Fannie and Freddie cost U.S. taxpayers?

Below, Corrections depicts the cumulative draws and dividend payments that Fannie has engaged in with the Treasury (click to enlarge).  Often, the companies were drawing on the Treasury's capital in order to pay the required 10% dividend to Treasury (hence, dividends are being paid to Treasury at the same time draws are being made).

We can alternatively look at the simple difference between net loans and net payments (click to enlarge):

Both Fannie and Freddie look to be on track to pay back the Treasury for capital infusions over the next few years.  However, because these payments are simply payments to the government's preferred stock, and not considered paying back loans (the government offered a capital line, not loans) the government is likely to make a profit on this deal, even if we wind down Fannie and Freddie over the next few years, as both the House, Senate, and White House desire (though in different ways).