Fannie Mae (FNMA)

[kthomp19]

They already have the needed Capital to exit the Phoney Conservatorship.

Wrong. FnF's core capital, which is what counts for an exit from conservatorship, is negative $126B right now.

Don't confuse net worth, which is positive $67B for FnF combined right now, with core capital.

And no, this is not even close to being just semantics. The difference between balance sheet net worth and core capital is immensely important, and is exactly why FnF are not on a realistic path to hit regulatory capital levels by just retaining earnings.

It is core capital, not net worth, that determines FnF's capital classification by HERA. If FnF were to be released from conservatorship right now, the FHFA director would be forced by law to immediately declare them "Critically Undercapitalized" (because core capital is negative), and would be legally allowed to impose conservatorship or receivership.

I highly recommend you read 12 USC Subchapter II, especially sections 4612, 4614 and 4617, to understand what I said above.