Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

OMG, Uncle Suggy is a damn pig!: "This chart shows that the total value of all cash
dividends paid to Treasury under the Net Worth Sweep
($245.9 billion) plus the net worth increases to Treasury’s
liquidation preference made in lieu of cash dividends ($78.3
billion) is equal to $324.2 billion. That is the current total,
using data available through the first quarter of 2022, of
the value transferred to Treasury under the Net Worth
Sweep regime – thus far. Had there been no Net Worth
Sweep, and had the GSEs instead paid the 10% dividend
at the 2012 level of $18.9 billion per year over the last nine
years and a quarter (FAC ¶64), their total payments to
Treasury would have been $174.8 billion (9.25 × $18.9
billion). Accordingly, one approximation of the excess
value transferred thus far to Treasury as a result of the
Net Worth Sweep is $149.4 billion ($324.2 billion received
under the Sweep minus $174.8 billion of 10% dividends
payable absent the Sweep).

But this $149.4 billion estimate actually understates
what Treasury has taken through the Net Worth Sweep,
for two reasons. First, the Net Worth Sweep remains in
effect, such that each quarter’s increase in net worth at
GSE results in an increase in the Treasury’s liquidation
preference in its senior preferred stock. Second, had it not
been for the Net Worth Sweep, the GSEs would have been
able to fully repay the amounts borrowed from Treasury,
with interest, eliminating the need to pay any ongoing
senior preferred dividend."

BAD UNCLE SUGGY! BAD!!!