Fannie Mae-No Politics (FNMA)

[Rodney5]

FOFreddie,

What am I missing here, anyone please help.
PURCHASE OF SENIOR PREFERRED STOCK AND WARRANT

What makes no sense it appears to be when the SPSPA took place no money changed hands from the Treasury Department on to the balance sheet of the companies; The Treasury paid no money on the purchase price.

non-cash activity,

If this is true?

The Treasury's illegal contract was never consummated, the Treasury paid us nothing, the purchase price of the contract was in the amount of $1 billion for purchase of One Million Shares (1,000,000) with an initial liquidation preference of $1,000 per share. Shares of senior equity in FNMA. It's all illegal and unconstitutional.

Our Friend Bryndon stated, “I'm pretty sure it was a non-cash activity.”

A non-cash activity, so in essence the FHFA gave away the companies for free with no cash added on to the balance sheet? A verbal transaction. Amazing!

If I am reading this wrong, someone help me.

Quote: “PURCHASE OF SENIOR PREFERRED STOCK AND WARRANT; FEES 3.1.

Initial Commitment Fee. In consideration of the Commitment, and for no additional consideration, on the Effective Date (or as soon thereafter as is practicable) Seller shall sell and issue to Purchaser, and Purchaser shall purchase from Seller, (a) one million (1,000,000) shares of Senior Preferred Stock, with an initial liquidation preference equal to $1,000 per share

($1,000,000,000 (one billion dollars) liquidation preference in the aggregate), and (b) the Warrant.” End of Quote Page 5

Link: https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-SPSPA_09-07-2008.pdf