Tuesday, July 02, 2019 8:12:50 AM
On a simplistic basis, that would appear to be correct. But it ignores the fundamental reason why the conservatorship was imposed and the SPSPA was agreed to by all parties. While the SPSPA remains in force and fully functional, the Us GOV stands behind payment of $5.5 trillion in mortgage bonds issued by Fannie Mae and Freddie Mac.
If GOV gives back $300 B and that ends the SPSPA, that also winds down any GOV guanantee of outstanding bonds which become the sole responsibility of the GSEs. They, thus, INSTANTLY become critically undercapitalized under any regulatory capital standard and go into receivership by law.
https://www.banknews.com/blog/frequently-asked-questions-treasury-senior-preferred-stock-purchase-agreement/
This also explains why GOV inserted the "warrant" provision into the SPSPA. It was NOT, as claimed pesterday, to enhance returns to taxpayers on the bailout. It was to compensate taxpayers for an explicit guarantee of MBS bonds issued by the GSEs for the duration of the conservatorship.
Hope this explanation helps you through a very complex subject.
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