Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

After FnF build “sufficient capital” to meet the 3 or 4% of net assets, while during the same period the Liquidation Pref goes up quarterly commensurate with the FnF retained earnings, the Treasury will get the lesser of 10% of the Liquidation Pref, which could be $500+ Billion or more by the time the 3% threshold is attained.

So now the Treasury could get $50 billion quarterly dividends on the Liquidation Preference? Or 10% on the net value quarterly increase of FnF? Whichever is lesser ... plus a commitment fee ... ha! Can someone say Nationalization?

Scotus, if you asked that question, you should see FnF have paid their debt in the $308 billion dollars paid.

Deem the gov paid back and net the LP to 0 and cancel the NWS in perpetuity. Then give the excess billions ($30 billion) back to FnF. Then, let the CFC handle damages on the takings ...

Interesting times ...