Fannie Mae-No Politics (FNMA)

[kthomp19]

If Treasury had equity in the corporations they wouldn’t be in conservatorship.

Wrong.

Treasury does have equity in Fannie and Freddie, just check the Senior Preferred Stock line in the equity section of the balance sheets that they release every single quarter.

Fannie and Freddie are in conservatorship.

Therefore your statement is false.

The reason FnF remain in conservatorship is that Treasury's equity stake (the senior preferred shares) doesn't count towards core capital because they are cumulative, and HERA prohibits cumulative preferred shares from counting towards core capital.