Although executives at Fannie Mae and Freddie Mac would love to see their dividend payments to the U.S. Treasury cut in half, it's unlikely that it will happen, according to a new report from Keefe, Bruyette & Woods (KBW).

"Although both companies are close to breakeven on an operating basis, the large dividend to the government will continue to increase their cumulative debt to the government," writes KBW analyst Bose George. "Further, we see no reason for the government to reduce the dividend." Both firms turned an operating profit in 4Q but after paying 10% dividends to Treasury, they lost money.

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