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Us Treasury To Sell $142Bn Of Mortgage Assets

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http://www.bbc.co.uk/news/business-12814609

The US Treasury has said it will start selling off $142bn (£87bn) worth of mortgage-backed securities that it bought during the financial crisis.

It said it would look to sell up to $10bn worth every month and expected to generate a profit of between $15bn and $20bn from the sales.

The money will help to reduce the government's high budget deficit.

The Treasury bought the securities in 2008 and 2009 as part of its attempts to combat the financial crisis.

"We're continuing to wind down the emergency programmes that were put in place in 2008 and 2009 to help restore market stability, and the sale of these securities is consistent with that effort," said assistant treasury secretary for financial markets Mary Miller.

"We will exit this investment at a gradual and orderly pace to maximise the recovery of taxpayer dollars and help protect the process of repair of the housing market."

Who's going to buy these and realistically this isn't going to make much of a dent in the US deficit of around $1.5tr?

Or is the aim of the Treasury dept to sell them to Fannie/Fred?

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http://www.bbc.co.uk/news/business-12814609

Who's going to buy these and realistically this isn't going to make much of a dent in the US deficit of around $1.5tr?

Or is the aim of the Treasury dept to sell them to Fannie/Fred?

Barclays are up for it.

Why wouldn't they? Buying them will make them more fictitious bonuses and if they turn out to be worthless crap taxpayer's step in and bail them out and via low interest rates they can steal more money with high margins between mortgages and from saving rates.

Win win win....

Barclays is among a group of investors weighing a rival bid for a portfolio of mortgage-backed securities that has already drawn a $15.7bn offer from AIG, people familiar with the matter said.

The securities are owned by the Federal Reserve Bank of New York and housed within Maiden Lane II, one of the special-purpose vehicles created as part of the insurer’s $180bn rescue during the financial crisis.

http://www.ft.com/cms/s/0/a29d0c0a-5414-11e0-8bd7-00144feab49a.html

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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