FANNIE MAE

Treasury to Receive $3 Billion Dividend

Fannie Mae said it would send a $3 billion dividend payment to the U.S. Treasury in December. It also reported that revenue declined in its latest quarter but profit soared due to accounting benefits and fluctuating interest rates.

The mortgage-finance company posted net income of $3.2 billion for the third quarter, up from $1.24 billion a year earlier. Revenue dropped 4.1% to $5.61 billion.

Fannie and Freddie's regulator and some lawmakers have expressed concern over their dwindling capital reserves. Under the terms of the companies' bailout agreement with the Treasury, they send profits above their established capital reserve to the government, but these buffers are slated to wind down to zero dollars by 2018. So far, that drop in reserves hasn't caused Fannie or Freddie to require more bailout money. Fannie reported net worth of $4.2 billion as of Sept 30.

Still, any blip in the housing market or volatility in the derivatives values could cause Fannie or Freddie to need taxpayer funds.

--Austin Hufford

HSBC

French Prosecutors See Tax-Evasion Case

French prosecutors recommended that HSBC Holdings PLC should stand trial for allegedly helping people evade taxes in France, a person familiar with the matter said Thursday.

If French judges decide to follow prosecutors' advice, HSBC could stand trial in Paris in the first half of next year. The judges also could dismiss the case.

Prosecutors began investigating HSBC in 2014 as part of a widening probe into whether the bank helped recruit customers in France, possibly breaching laws authorizing only French-registered lenders to sign up customers in the country. The investigation also examined whether the bank was complicit in laundering the proceeds of any tax evasion.

"We will continue to defend ourselves vigorously," a spokeswoman for the British bank said Thursday.

--Noemie Bisserbe

S&P GLOBAL

Sale of J.D. Power Drives Up Profit

S&P Global Inc.'s bottom line more than tripled in the third quarter, boosted by the sale of J.D. Power, and the financial-information and analytics firm again raised its outlook for the year in anticipation of continued strong bond issuance.

S&P Global, formerly McGraw Hill Financial, reported third-quarter profit rose to $923 million, or $3.36 a share, from $281 million, or 92 cents, a year earlier.

Excluding a gain on the sale of J.D. Power and other items, adjusted earnings rose to $1.43 a share, topping analysts' expectations of $1.34. Revenue reached $1.44 billion, just above estimates.

For 2016, the company raised its adjusted earnings estimate to $5.15 to $5.25 a share based on strong year-to-date results.

--Anne Steele

 

(END) Dow Jones Newswires

November 04, 2016 02:47 ET (06:47 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Grafico Azioni Fannie Mae (QB) (USOTC:FNMA)
Storico
Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di Fannie Mae (QB)
Grafico Azioni Fannie Mae (QB) (USOTC:FNMA)
Storico
Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di Fannie Mae (QB)