Thursday, September 12, 2019 2:32:33 AM
FnF can continue building up Capital with retained earnings while paying a small dividend to the SPS until fetching a 100% Capital Surplus over their Adequate Capital level. This isn't a regulatory capital threshold but it's been proven that the Capital Surplus that FnF had before 2009 wasn't enough.
Notice that the dividend payment to the Commons can be suspended during many years, but it doesn't affect their valuation.
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