"it may require an Enterprise to develop and implement a capital restoration plan, restrict asset growth or activities, and take other appropriate actions to remediate the violation of law.3 ...The Enterprises are currently in conservatorship, are subject to the restrictions of the Senior Preferred Stock Purchase Agreements between them and the U.S. Treasury, and do not hold capital anywhere near the levels specified in the ERCF. The capital plans will allow the Enterprises to identify the amount of capital they need to raise to close the gap with the ERCF, and to consider the timing of when to raise capital, and what types of capital to raise."
Am I missing something? This sounds like they're open to recapitalizing the companies, that they have identified that the SPSPA's are a problem, and the timeline for implementation is next October. It also sounds like they're leaving it to F&F to create the plan.
Why is there such a negative market sentiment concerning this?
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