Fannie Mae-No Politics (FNMA)

[imtheshadow]

bcde replies to RuddG:

"So you are saying effective accounting entries are
Dr senior preferred stock Cr accumulated deficit

Basically it means you are subtracting from one account and adding to another account both of which are on liability side. Is it correct accounting?"

RuddG, and the accounting entry noted above, are correct if the SPS are cancelled. The offsetting credit effectively eliminates the accumulated deficit. However, fyi, both of the accounts are part of stockholders' equity (not liabilities).

See bottom of page 52, the balance sheet reported in the Q3 10-Q:

https://www.sec.gov/ix?doc=/Archives/edgar/data/310522/000031052218000363/fanniemaeq30930201810q.htm