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Treasury Notes

 Chart of the Day: Treasury Completes MBS Portfolio Wind Down, Generates $25 Billion Positive Return for Taxpayers

By: Matt Anderson
3/19/2012

Today, the U.S. Department of the Treasury announced the completion of the orderly wind down of its agency-guaranteed mortgage-backed securities (MBS) portfolio, which it acquired as part of its response to the financial crisis. Overall, Treasury’s MBS portfolio generated a positive return of $25 billion for taxpayers.

Treasury invested $225 billion in MBS during 2008 and 2009 through authority provided to it by Congress under the Housing and Economic Recovery Act of 2008. These MBS purchases helped preserve access to mortgage credit during a period of unprecedented market stress. Overall, taxpayers received total cash returns of $250 billion from this MBS portfolio through sales, principal, and interest – $25 billion more than their initial investment. The wind down of the program was managed by Assistant Secretary for Financial Markets Mary Miller, Deputy Assistant Secretary for Federal Finance Matthew Rutherford, Treasury policy advisor Brian Zakutansky, and other key Treasury staff.

The following chart provides an overview of the wind down of the portfolio and the positive returns it generated for taxpayers.

Matt Anderson is a Spokesperson at the U.S. Department of the Treasury.

Posted in:  Mortgage-backed Securities
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