Fannie Mae-No Politics (FNMA)

[kthomp19]

Bottom line - the Senior Preferred are currently showing as a liability

No, they are showing as (positive!) stockholder equity. I showed a screenshot of Fannie's 10-Q and a link to Freddie's 10-Q (on page 81) showing that.

Freddie Mac 10-Q

If that senior preferred liability is removed that asset is still there - giving them suddenly a positive net worth of $187.5B.

Again, the senior preferred is listed as positive stockholder equity. If that line is deleted from the balance sheet the only way to keep things balanced is to reduce assets by that amount, increase liabilities, or increase equity somewhere else. The last of these is what would happen; it would nearly eliminate the accumulated deficit line item. But net worth would remain near zero as it is now.

Some had asked where that $187.5 billion went - it has been sitting in their balance sheets all along. Of course they don't keep it in cash - they used it to buy mortgage securities and the like... but it's still there.

Also incorrect. That $187.5B, plus around $90B more (and counting), has been sent to Treasury.