Fannie Mae-No Politics (FNMA)

[GAK-]

If the Net Worth is allowed to increase to the limit of the capital rule, that would be roughly $280B

If the "liquidating preference shall be increased by an amount equal to the increase in the Net Worth amount" (section III)

and "If the company shall issue any shares... of up to $70 billion... then the company shall pay down the liquidation preference of all outstanding shares of Senior Preferred stock pro rata."

This would seem to cap their ability to pay down the SPS, meaning the liquidating preference will always be there. And it will always require a 10% dividend until it is gone. Who would ever put money into that?