Fannie Mae (FNMA)

[bcde]

"One needs to ask jtimothyhoward the following questions:

1. If FnF net worth is zero before reversal of NWS then what happens to FnF networth after NWS reversal?

FnF net worth went down to zero because of NWS. So FnF net worth should go up if NWS is reversed. NWS reversal results in writing off about $193.5B SPS (an obligation) with no further payments to Gov.

2. How capital and net worth related? "



If NWS was started to drive down FnF networth to zero, then reversing NWS should increase FnF net worth. NWS was a net capital outflow (until net worth was reduced to 0) since dividend distribution was done from capital accounts. That is why FnF have accumulated deficit under capital accounts category.