The GSEs profits are likely to prove fleeting, according to a report from Moody's analyst Brian Harris on Monday. Harris notes the profits are due to reserve releases and argues future earnings will not exceed the amount the government sponsored enterprises owe the Treasury in dividends. The Treasury has been backstopping the GSEs since the 2008 crisis.
Financial stocks in general were mostly flat on Monday as the Financial Select Sector SPDR (XLF) rose just .07% to $14.95.
-- Written by Dan Freed in New York.
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