Fannie Mae-No Politics (FNMA)

[Rodney5]

AGAIN

The problem is not that the Treasury Swept the Net Worth of the companies. THE PROBLEM: The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the terms of the Pay Down of the Liquidation Preference applied.

Self-dealing FHFA appointed CEOs

WRITTEN AS CLEAR A DAY, Optional Pay Down of Liquidation Preference.

No one from the companies sent any letter to the Treasury stating the Liquidation Preference has been paid in full and the Senior Preferred Stock canceled. Instructions are written in the contract to do so. The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the Pay Down Option of the Liquidation Preference. The CEOs let the Treasury take it for free with no representation of the shareholders.

Self-dealing FHFA appointed CEOs

WRITTEN AS CLEAR A DAY, Optional Pay Down of Liquidation Preference.

Any loyal conservator of Fannie and Freddie would take advantage of the refinancing option to end the bailout arrangement, by paying off the senior preferred in full.

READ THE TERMS OF THE CONTRACT

According to the 'Contract' the companies did not need Treasury's permission to pay down the LP.

The money swept by the Treasury apply it to LP and the 10% over payment returned to the companies the LP would be paid in full and the SPS would be redeemed and the SAME DAY IN TIME the companies could turn to the Market with a secondary IPO replacing the commitment.

Link: https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf