Freddie Mac reported a second-quarter profit of $4.2 billion, sharply up from $524 million in the first quarter. Since returning to profitability, the two firms have made quarterly dividend payments to the Treasury but some have been small in recent quarters and executives have warned that further bailout funds might be required in the future. Well then why are you making dividend payments? This is the same mentality that caused the crash to begin with. Payout for this quarter. I’m sure it will trickle down to us taxpayers who footed the original bill. Considering the treasury can print their own money, I’m not sure why this is a good thing. They are making the payments because the bailout requires that ALL profits go to the government, leaving them a zero pad for bad quarters, as you point out. I haven’t been able to find out if there is a time/dollar limit on the paybacks. (NYSE: BAC)