Fannie Mae-No Politics (FNMA)

[bcde]

"Put a different way: right now the companies have zero capital and "owe" $187.5B."

kthomp1,

Thanks, Please take help of accountants to understand the concepts.

Networth is zero when assets are equal to liabilities.

SPS of $187.5B is a liability. If liability is reduced as paid off then what happens to net worth?

The amount of positive net worth is the capital.