Fannie Mae-No Politics (FNMA)

[Wise Man]

You learn first what a dividend is.
1st. Restricted when undercapitalized (to build capital obviously)
2nd. Unavailable funds for distribution, out of a Retained Earnings account (Equity) with Accumulated Deficit all along.
3rd. A breach of the conservator's Rehab power.
4th. In this world, mandatory dividend doesn't exist (FHFA's attorney), otherwise it'd be interests payments (expense). Then, it'd be a different security.

Therefore, what FnF sent to UST can't be called dividend because it can't be an actual dividend.
It was a capital distribution under the guise of dividend payment, that is applied towards the exceptions to the Restriction on Capital Distributions in the FHEFFSA (reduction of SPS), then the CFR1237.12 (Recapitalization)
The conservator's Incidental Power allows it to mislead (take any action...) if the endgame is the rehabilitation of FnF (...authorized by this section)
The goal is to legalize this action that shouldn't have existed.
Who in their right mind would pay dividends during a Conservatorship for Critically Undercapitalized enterprises, first 10%, then a NWS dividend? Someone carrying out a Separate Account plan, similar to the one in the 1989 scheme with the FHLBanks and with the same officials (DeMarco, Sandra Thompson)

Learn what a dividend is.

, says Bradford.