Fannie Mae-No Politics (FNMA)

[Wise Man]

Don't say "raise money" when someone taps the capital markets for funds, because that money could be raised in the debt markets.
You still don't understand the double-entry accounting in a Balance Sheet.
FnF need Equity, not cash. They have tonnes of cash.
This is why, when FnF sent cash dividends to UST, they sent capital (Equity) because a dividend is a distribution of Earnings (Equity.Core Capital). Therefore, the plaintiffs can't ask for a simple cash refund of the SPS overpayment.
If you want to harass the shareholders, we require that, at least, you do it properly, otherwise let other take your place, like Bradford-LuLeVan or the plaintiff Joshua Angel in this board with 20+ aliases.

If they do not need to raise money they will remain on OTC until Conservatorship is complete.

Firstly, learn that it's been 15 years into Conservatorship building capital as seen in my signature image (Separate Account plan). The Transition Period to build capital to the new thresholds (Regulatory Risk: from 0.45% to 2.5% of the MBS Trusts. Basel framework) has been completed:

1- They weren't released at the discretion of the conservator with a Capital Restoration Plan, as contemplated in the prior FHEFSSA Conservatorship struck by HERA.

2- Also, in light of the prior FHEFSSA, they weren't released Undercapitalized "MANDATORY": Core Capital or Tier 1 Capital > Leverage or Minimum Capital requirement.
Fannie Mae: 4Q2021
Freddie Mac: 1Q2021

3- Not released when they fetched the threshold to resume the dividend payments (25% of the Prescribed Capital Buffers. Table 8: Payout ratio)
Fannie Mae: 3Q2022 Earnings reports. Watch $FNMAS' fair value chart in the link below (The capital buffers are calculated over T1, not C.C. with statutory definition. T1 is slightly lower. This is why there is some delay in the chart)
Freddie Mac one year earlier.

4- Not released after surpassing the threshold CET1 >2.5% of the Adjusted Total Assets that allows the redemption of the JPS and meet the T1 >2.5% posted before.
Laggard Fannie Mae: 3Q2023 Earnings report (But Capital Buffer = 22% of Total prescribed)

5- Not released once considered the JPS redeemed with the prior threshold and then, FnF met the threshold for the resumption of dividend payments.
Fannie Mae: 4Q2023 Earnings report (Capital Buffer = 40% of Total. Freddie Mac = 102%)

The fact that the new Capital Rule hasn't been unveiled until the end of the typical Transition Period to build capital (Hence called "back-end Capital Rule". Effective February 16, 2021), thanks to the absence of the provision 18-month implementation when the law directs the FHFA to come up with changes, like in the FHEFSSA of 1992 in question, shows not only that they had in mind the full recapitalization for the release when HERA was enacted, keeping the Basel framework secret to the max, even expressly written in same Capital rule that FnF must keep secret the capital requirements and capital shortfalls until January 1st, 2022 (So it shows up in the FHFA 2022 Report to Congress in mid 2023), and through a Separate Account, linking it to the second UST backup inserted in the Charter Act at infinite rates and in an infinite amount.

Then, we have this extended Conservatorship (Conservator Risk: "In the best interests of FHFA". Incidental Power) because the FHFA wanted to get rid of the unwanted members, FHLBanks-style in its 2016 Final Rule, proposed in 2010. So, it's been in the making from the onset ("Wind down the affairs of the FHLBs with the captive insurers")
Then, a few more months so that FnF can resume the dividend payments for the new membership.
Although the Congress might disagree with the FHFA's stance (FnF combined, taken private and owned by the participants in Housing Finance)
FHFA continues to override Congress laying out future plans for the FHLBanks. Two weeks ago, FHFA's Sandra Thompson and other staff rang the bell at the NYSE when they submitted the 2023 Report to Wall Street.

Take into account the chart of the JPS's fair value to explain why they haven't been released with 1 and 2 (trading at a discount to par value). 3, 4 and 5 not only paves the way for the expulsion of the unwanted Equity holders, but also it's an opportunity for the UST to take FnF over at the BVPS, as interim step for the acquisition by bigger players, not only to stage the necessary cutoff date with the Charter revoked (for instance, it still can be as of December 31, 2023. Something like this was stated by Calabria in 2015), but also the UST could sweep their Deferred Income for itself if the Accounting Standard is changed, so it's amortized into earnings in one fell swoop (currently, recorded as Debt), after watching the disproportionate amount held by Freddie Mac, just renaming the upfront g-fee "Delivery fee" (only the FHFA calls their LLPA "upfront guarantee fee", not FnF)

Secondly, get a grip. "Cash Equity" doesn't exit. Your are talking about a Mutual Fund.