Freddie Mac (FMCC)

[FFFacts]

Quote:I read the letter agreement you read the books.



I read the law. HERA specifically defines what core capital is, and looking at the balance sheets, core capital has been increasing since the two letter agreements (Sep 2019 and Jan 2021) have been signed.

You said "Technically they are not recapitalizing they are just retaining cash" and that statement was wrong. FnF are doing both of those things, and Treasury's claim to that cash doesn't matter when it comes to HERA's definition of core capital.

Quote:You don't know what they envision for the future.



True, but I do know what they envisioned for (what was at the time) the present, which is that each dollar of senior pref liquidation preference is not worth a dollar in cash.

Your statement is not a rebuttal of mine anyway, merely a side note.


You are merely inferring that from the balance sheet. As I had mentioned already the letter agreement states simply treasury claim and the extent of that claim. You are reading too much into this and trying to infer the future based on what you think is going to happen. Read the text of the letter agreement.