Updated from 12:48 ET with market close information and updated stock returns.NEW YORK ( TheStreet) -- Investors on Monday kept pouring money into common stocks of Fannie Mae (FNMA) and Freddie Mac (FMCC).
Because of its massive bailout of the GSEs, the U.S. Treasury holds $117.1 billion in Fannie Mae senior preferred shares and $72.3 billion in Freddie Mac senior preferred shares. Both GSEs returned to profitability last year, and have been making very significant dividend payments on the senior preferred shares, while private investors holding junior preferreds have had their dividends suspended since September 2008. Fannie Mae announced on May 9 that it would pay the Treasury a second-quarter dividend of $59.5 billion, after determining it could recapture most of its valuation allowance for deferred tax assets (DTA) at the end of the first quarter. Freddie Mac announced on May 8 that it would pay a dividend of $7 billion to the Treasury in June. Following the June dividend payments from Fannie and Freddie, the government will have received dividends totaling $131.6 billion on its combined GSE preferred investment of $189.4 billion.