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18 июня 2011, 17:12

Update on Treasury’s MBS Wind Down -- Taxpayers Recover an Additional $12.9 billion in May

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Today, Treasury is providing an update on the continued orderly wind down of its agency-guaranteed mortgage-backed securities (MBS) portfolio. The report that Treasury is releasing today shows that: During the month of May 2011, taxpayers received an additional $12.9 billion in proceeds from this investment through sales by Treasury with a market value of $10.5 billion ($10.0 billion principal value) and principal and interest payments of $2.4 billion. Through the end of May 2011, taxpayers have received a cumulative total of $133.8 billion in proceeds from this investment through sales by Treasury ($24.6 billion) and principal and interest payments ($109.2 billion). Today, Treasury also published a report on broker-dealer market shares for these MBS sales. We believe that the publication of this scorecard will help both maximize taxpayer returns and provide additional transparency. We plan to update the scorecard on a monthly basis. Treasury has now recovered 59 percent ($133.8 billion) of its original $225 billion investment in MBS, which it made during 2008 and 2009 through authority provided to it by Congress under the Housing and Economic Recovery Act of 2008. These MBS purchases helped stabilize the financial markets and preserve access to mortgage credit during a period of unprecedented market stress. The MBS market has improved considerably since Treasury purchased these securities. Based on current market conditions, Treasury expects to make a profit for taxpayers on this investment. On March 21, 2011, Treasury announced that it would begin the orderly wind down of its MBS portfolio. Treasury plans to sell up to $10 billion MBS (principal) per month, subject to market conditions. The sale is part of Treasury’s continued efforts to wind down emergency financial crisis response programs that were put in place in 2008 and 2009. While Treasury did not begin to sell its MBS holdings until March 2011, principal and interest payments have occurred over the life of the investment. The remaining amount of principal outstanding in Treasury’s MBS portfolio has declined by nearly 45 percent from its peak of $192 billion in December 2009. For additional details on Treasury’s remaining MBS portfolio, please visit link. Mary J. Miller is Assistant Secretary for Financial Markets