Fannie Mae to send $59.4 billion in cash toTreasury

Fannie Mae , the biggest mortgage-finance company operating under government control, on Thursday said it would pay the U.S. Treasury Department $59.4 billion in dividends during the second quarter after recognizing tax benefits it had written down.

The company reported a pre-tax income of $8.1 billion for the first quarter and said it was booking an additional gain of $50.6 billion by reversing the write down of certain deferred tax assets. That resulted in a net income of $58.7 billion, a record for the company, and compared to a $2.7 billion profit in the same three month period a year earlier.

(Reporting By Margaret Chadbourn)