Fannie Mae-No Politics (FNMA)

[Wise Man]

Only those that read #Fanniegate daily know why the stocks rally.
In the latest analysis, both the defendant and the plaintiff are accused of perjury, that is, an attempt to mislead the judges with lies, with regard to the letter sent by the Solicitor General to the Supreme Court and the reply brief by the plaintiff.
Both said that FnF are building up capital now, when that's false. The attorney Thompson said that it's "ephemeral" because he implies that no journal entry (how transactions get recorded on the companies' books on a daily basis) is required at the time of the transaction, so the Capital amount will be reduced in the future, when the SPS are redeemed.
The truth is that an offset must be recorded at the time of the increase in the SPS Liquidation Preference for free and that reduces the Core Capital, so the outcome is that FnF aren't building up Capital.
The more felonies are committed, the more moral and punitive damages, because they act a settlement with the equity holders.