Fannie Mae-No Politics (FNMA)

[YanksGhost]

Parsing "net worth" does not alter the reality that DTAs retained but not actionable because there are no or insufficient earnings to offset cannot be employed as capital because negative net worth defines a technical insolvency event.

An insolvency is a trigger point for receivership under HERA. Kthomp cited the statute, correctly, earlier. Besides, under the executed SPSPA, negative net worth FORCES a draw from UST which in 2008 was virtually out of open facility after the initial bailout was transferred to the GSEs.

I don't like this any more than you do, but it is reality.