Fannie Mae-No Politics (FNMA)

[DumbDumberDumbest]

After 9 years into Conservatorship you lack understanding of basic concepts.
The draw and the Senior Preferred Stocks are the same. I mean both occur at the same time and for the same amount of money. FnF get the money and issue SPS to Treasury as a compromise of repayment. The SPS are accounted for in the Balance Sheet and is what "zeroes" the Net Worth.
The Deficiency Amount is Assets less Liabilities, in other words, the Net Worth.

Note the word "net"

The Treasury just has a problem saying the words "Net Worth", just like the "Minimum Net worth" is called the "Applicable Capital Reserve Amount".
The quote you published from the SPSPA just wanted people to understand that the obligations called Preferred Stocks are not included in the Liability column, but we already knew it, right?
Making a mistake saying repeatedly that FnF have negative Equity, just because you haven't read carefully how the SPSPA explains the mechanism of the draw and the Deficiency Amount, is unforgivable.