Future losses at Fannie Mae and Freddie Mac will be driven not by their operating results, but by the fact that they must continue to pay the U.S. Treasury hefty dividends on the preferred stock the government owns in the two, according to a new report from Keefe, Bruyette & Woods.

KBW noted that because of this financial albatross hung around the necks of the GSEs, their shares – which are traded on the OTC market – essentially have no value.

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