MetLife Free of Fed Oversight, Freddie Mac’s Strong Quarter: Financial Biz Review
MetLife (NYSE:MET) should now be free from oversight by the Federal reserve after divesting its mortgage-servicing portfolio which will also cause the firm to surrender its bank charter. The sale also permits the return of more than $1 billion in capital via a share repurchase and dividend hike. Only approval of the OCC of the sale of Met’s deposit business to GE Capital (NYSE:GE) remains, and that could occur by the end of the year.
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Freddie Mac (FMCC.OB) posts its fourth straight quarter of profits along with a third quarter net income of $2.9 billion. Fully 60 percent of its book is now post-2008, which means that the credit quality is very high. The serious delinquency rate on post-2008 loans stands at 0.37 percent and at 9.38 percent on loans dated between 2005 and 2008.
Shares of Annaly Capital Management (NYSE:NLY) moved down Tuesday following Monday night’s earnings report and the subsequent conference call. Chief Executive Wellington Denehan-Norris commented that, “Our balance sheet is not a trading vehicle. The active involvement of policymakers in the mortgage market… has introduced unique challenges for all investors.” Credit Suisse reduced its price target on Annaly from $17 to $16.
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