Fannie Mae (FNMA)

[contrarian bull]

Do you think this will be considered a loan on top of the original draw? In other words - do they now owe the original bailout money plus $3 billion?

The original negative net worth that caused the draw was made up years ago. They didn't have to start paying the net worth sweep until they accumulated enough net worth to cover the senior preferred liquidation amount from the previous draws plus the previously allowed net worth (which decreased every year). Their net worth went positive when they put the DTA's back on the books and from operating profits.

Remember - they never really needed the cash from the original draws. So it sat on the books in cash and various assets they invested in since then, and is still sitting there. Just waiting to be given back to treasury if they would just allow it.

Now - if they got credit for previous dividends, or if those seniors were forgiven.... heck yeah their net worth would skyrocket. That's how some posters here get to a $180-300 per share price. Not very likely either but probably as likely as liquidation.