Fannie Mae-No Politics (FNMA)

[Wise Man]

The negative Core Capital was caused by their accumulated losses, just the opposite to a Retained Earnings account. This has nothing to do with the Treasury draws. It has to do with the fact that the SPS aren't recorded as Core Capital due to their "cumulative" feature under the definition of Core Capital in the FHEFSSA, unlike the noncumulative JPS. Therefore, it's a question of bad faith of the conservator and the Treasury secretary in the 2008 Agreements.
This negative Core Capital will be fixed once the SPS are canceled, as FnF would report an accounting profit that would offset it. It's a kind of magic.