Treasury working to wind down Freddie, Fannie

All profits from finance companies Fannie Mae and Freddie Mac will now go directly to the U.S. Treasury instead of the 10% dividend requirement outlined in their government bailout. “Every dollar of earnings that Fannie Mae and Freddie Mac generate will be used to benefit taxpayers for their investment in those firms,” the Treasury said. The firms will also be required to reduce their investment portfolios at an annual rate of 15% instead of the previous 10%. Taken over by the government during the financial crisis, these changes will speed up the winding down of the two government-owned mortgage financiers, the Obama administration said.