Fannie Mae-No Politics (FNMA)

[kthomp19]

I put the f&f numbers into an interest-only line of credit spreadsheet and taking into account that I don't have handy the balances for the first few years - yes, they have paid cumulative interest of 10% on the monthly outstanding balance AND have paid off the $187B principal.

So - if the NWS never happened (or if it was reversed) the net worth of f&f would be a little over $187 billion today.

I don't believe that this last part is correct. FnF just barely passed the point where they paid the $187B plus the 10% interest.

That means that until this point there was actually no difference between the NWS and the original SPSPAs if they had forced FnF to use their net worth to pay down the senior preferreds.

Or put another way, no difference between the NWS and FHFA directing FnF to put all net worth into paying down the senior preferreds while suspending normal capital requirements.

So if the NWS is only just now starting to be any different from the original SPSPA, there is no way that cancelling the NWS retroactively at this point will suddenly add $187B to capital.