Fannie Mae (FNMA)

[kthomp19]

What is our current retained earnings?

What matters here are regulatory capital levels. Assuming the seniors get cancelled, converted to common, or some combination of both, core capital is basically equal to book equity, while Tier 1 excludes DTAs and AOCI and CET1 further excludes the juniors.

As of the end of 2020, the totals were:

Fannie Mae
Core capital/book equity: $25B
Tier 1 capital: $12B
CET1 capital: -$7B

Freddie Mac
Core capital/book equity: $16B
Tier 1 capital: $10B
CET1 capital: -$4B

Combined
Core capital/book equity: $41B
Tier 1 capital: $22B
CET1 capital: -$11B

I would expect the numbers as of March 31 to be around $3B higher for Fannie, $2B higher for Freddie, and $5B higher combined due to retained earnings.

According to the capital rule, CET1 is the one that matters for exit, while core is the important one in reference to HERA.