Yep, you read that right. $0 billion. Late Friday, Freddie Mac reported a gain of $768 million, its first profit in two years. As a result, the company did not request any more funds from the Treasury Department, as it has when reporting the results for every quarter since the government takeover. The total taxpayer outlay to Freddie stands at $50.7 billion. (And $44.9 billion to its twin Fannie Mae.)

So has one of our government wards turned the corner? Will the taxpayer see that $50.7 billion start to come back?

In a word, no. The company owed its earnings, it said, to "one-time accounting adjustments and mark-to-market gains that are subject to change in future periods," as well as "the recent modest national home price improvements, which the company believes to be largely seasonal." So it would seem to be more a break from massive losses than a turning point. The head of the government agency that oversees Freddie said recently that he expected the companies to need government support for “at least the next year or so.”

Other bailout links this morning:
Paulson’s Calls to Goldman Tested Ethics (NYT)
Effort to Rein In Pay on Wall Street Hits New Hurdle (NYT)
Banks Make $38 Billion from Overdraft Fees (FT)
Will Bill Help Fix Compensation on Wall Street? (NYT)
Pay Czar Quietly Meets With Rescued Companies (WaPo)
TARP Lobbying Rules Being Finalized (Wash. Times)

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