Fannie Mae-No Politics (FNMA)

[Wise Man]

***THE SHAREHOLDERS OUTLINE A $3 TRILLION INFRASTRUCTURE PLAN PROPOSAL*** Under a Severely Adverse Scenario, the stress test conducted by the FHFA, shows that FnF would post $15 billion of Net Income in 2 years, despite including a whopping $42 billion provision for future credit losses. Under this scenario, FnF would have a Loan Loss Reserve at the end of the "nine-quarter planning horizon" (1Q2023) of $31 billion, after the $20 billion credit losses during the period. It means that the Capital requirement should be $0 and their current $235 billion of Core Capital under the Secret Plan, is spun off into a new company for infrastructure projects. In the end, FnF are ruled by the Charter that includes a UST cheap backstop when their Net Worth is negative. So, there is no need of massive Capital in FnF. So, the proposal gets rid of the Capital requirements and Capital classifications, declaring the FHEFSSA, null.
The criminal behavior of the FHFA will be punished. The FHFA would be dissolved and FnF return to be overseen by the FHA like before. No Federal programs are allowed in a Charter related to secondary market operations. The JPS resume the dividend payments regardless of the Capital of FnF, that will keep on building Capital until they accumulate a minimum of $50 billion of Retained Earnings. Beat that, Yellen!