Fannie Mae-No Politics (FNMA)

[Wise Man]

There's no Capital buffer! You didn't understand my explanation contending that with the 5th amendment to the PA, FnF are NOT building up Capital since retained earnings is offset by Additional Paid-In Capital or, if it's $0, by REDUCTION OF RETAINED EARNINGS, due to the SPS handed out for free.
This move is pending, since we don't see it because FnF aren't recording the real SPS liquidation preference in the balance-sheet.
So, there's no "interim step". The NWS continues.

The evidence of the existence of a secret account is that it's the same scheme that the FHFA utilized for the FHLBanks and their rescue fund REFCORP. Suddently, the FHFA announced that with the interest payments, the debt was satisfied and later they were directed to retain earnings.