Fannie Mae-No Politics (FNMA)

[Rodney5]

Vancmike, I appreciate your contribution to our cause in our attempt to get out of this prison.

When giving consideration to the amount of the Treasury Draws and the amount of the Treasury payments. Fannie Mae had $47 billion in regulatory capital and was in full compliance with all of its statutory capital requirements on the day it was put into conservatorship and the senior preferred stock agreement was signed.

Deferred Tax Assets fabricated losses, the FHFA admits this fact in a foot note.

(From what I have read)

During the following 18 months, Fannie Mae’s actual credit-related losses—its loan charge-offs and foreclosed property expense— were just $16 billion. Virtually all the rest of its losses were accounting changes made by the company’s conservator, FHFA, that pulled into Fannie Mae’s 2008 and 2009 financial statements over $100 billion in "expenses" that, as it turns out, never occurred.

What I am reading, “FHFA took a $21 billion charge to set up a reserve against the company’s deferred tax assets, arguing that it would not earn enough in the future to realize their full value, and gave a similar reason for writing off $8 billion in low-income housing tax credits. FHFA also took $17 billion in impairments on the company’s private-label security holdings and put $56 billion into its reserve for future loan losses, increasing that to $66 billion on December 31, 2009.

FHFA and Treasury engineered these large and early losses deliberately. But without these engineered losses, Fannie Mae would never have run out of capital, and would have survived the financial crisis stronger than ever.'

Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170005269

From the FHFA

Deferred Tax Assets fabricated losses, the FHFA admits this fact in a foot note on their own website. Well over $300 billion in non-cash accounting expenses were recorded on their income statements. These non-cash expenses, most of which were discretionary, eliminated all of the Companies’ capital and forced them, together, to take $187 billion from Treasury. Fabricated losses to make the companies appear bankrupted.

FROM NUMBER 1 FOOT NOTE FHFA WEBSITE: link below
NOTE: “UNREALIZED LOSSES”

Quote: “Both GAAP stockholders’ equity and GAAP net worth are measures of the difference between an Enterprise’s assets and liabilities. Both measures include realized and unrealized losses as of the reporting date. Losses ultimately realized in the future may differ from unrealized losses as of the reporting date.” End of Quote...

Quote: “Quote, "Excludes $1 billion in liquidation preference on the senior preferred stock position obtained by Treasury from each Enterprise upon initiation of the Senior Preferred Stock Purchase Agreement. The initial $1 billion is not a draw on the Treasury’s commitment under the agreement.” End of Quote.

Link: https://www.fhfa.gov/DataTools/Downloads/Documents/HPI/Market-Data/Table_1.pdf

In Addition, Mr. Howard Quote: “Because accelerated or exaggerated expenses cause losses that are only temporary, Fannie’s and Freddie’s non-cash losses began to reverse themselves in 2012. Coupled with profits resulting from a rebounding housing market, the reversal of these losses enabled both Companies to report in August 2012 sufficient second quarter income to not only pay their dividends to Treasury but also retain a total of $3.9 billion in capital. As soon as it became apparent that a large percentage of the non-cash accounting losses booked during the previous four years was about to come back into income, Treasury and FHFA entered into the Third Amendment to the PSPA.” End of Quote