Fannie Mae-No Politics (FNMA)

[kthomp19]

324.2B sent to treasury

No. FHFA's Table 2 shows that the correct number is $301.045B.

But that's just the cash FnF sent to Treasury. You have to also count the cash Treasury sent to FnF. That's in FHFA's Table 1, which is $191.484B.

The net number is what you should use: $301.045B - $191.484B = $109.561B.

90.6B Retained earnings

0.0B to shareholders

Instead of "retained earnings", you should use "balance sheet equity".

Retained earnings is its own line on the balance sheet: right now for Fannie that's negative $76.873B and for Freddie that's negative $48.742B.

The zero to shareholders (if you don't include Treasury as a shareholder, which they are because the seniors are shares) is correct.

414.8B Total revenue generated

Since the first number was wrong, this one is too.

$109.561B + $90.505B = $200.066B. That would be just short of FnF's base leverage (minimum) capital requirement in Thompson's capital rule of $204.879B....if the seniors were cancelled or converted to common. And if Treasury were to send that $109.561B back in cash they would want to convert the seniors to recoup it.