Fannie Mae-No Politics (FNMA)

[Wise Man]

kthomp19 has difficulties in understanding Law and Finance.
He doesn't know that the underlying security in a Preferred Stock is an obligation (in respect of capital stock, that is, recorded in Equity), thus, a debenture or promise of repayment. They are perpetual but always redeemable at the option of the issuer.
A warrant is a security and it must uphold any of the 3 prerequisites in the temporary authority of UST to purchase securities. The only one that fits the Warrant is (iii) to protect the taxpayer, that is, a collateral of the investments in SPS.
If the UST got it for free to evade its purchase, we consider it a purchase at no cost. Anyway, it's barred in the Charter's Fee Limitation of United States.

He doesn't know what capital distribution means. That they are restricted when undercapitalized, with exceptions,...

The conservator's Incidental Power allows it to lie in the best interests of FHFA, while fulfilling its statutory mission.

Let alone the original cheap UST backup of FnF as a last resort, in exchange for their Public Mission (Purposes)

The attempt to replicate the 1989 bailout of the FHLBanks with a Separate Account, including the Public-Private Partnerships with Wall Street.

This is why accoutability is the key, including the payment of Punitive Damages, beginning with the people and institutions with deep pockets behind all the scammers stuck to Fanniegate.