Fannie Mae-No Politics (FNMA)

[Wise Man]

Again with that bs, Bradford? It's always SPS LP.
There aren't two types of SPS.

Current status (estimated values):
SPS = $191 billion
LP = $300 billion

Liquidation Preference is how you value your Preferred Stocks (Liquidation Right). Others might choose the redemption value. Others the par value. With the JPS, the three of them coincide.
The total dollar amount of SPS LP outstanding is $304B FnF together (not $491B as you claim). Breakdown:
$2B, the initial $1B SPS LP issued for free on day one, each enterprise (1,000,000 stocks at $1,000 LP each stock)
$191B. These are the SPS corresponding with the draws from UST.
$111B gifted SPS. The LP is increased each quarter in an amount equal to the Net Worth increase. This SPS LP is absent from the balance sheets in order to not post the offset (reduction of Retained Earnings) like occurs every time a company issues/increases stocks for free (without getting the money). For instance, stock dividends or the initial SPS mentioned before (it reduced the Additional Paid-In Capital account, Core Capital too). If FnF post these SPS, today's $111B Net Worth would be comprised of $111B SPS LP. So, FnF are building SPS LP, not regulatory capital.

Therefore, the $111B worth of SPS LP absent from the balance sheets, you can't call it a separate account because no where is contemplated in the law that action, but Financial Statement fraud (Illegal: monetary penalty, prison sentence). It's one of the 8 Securities Law violations for which we request Punitive damages.
Don't mistake it for the true Separate Account that holds the Common Equity in escrow, as per the law that contemplates capital distributions (Capital exits the balance sheets) if it's applied towards the reduction SPS and their recapitalization. So, it's legal and it's been done secretly as FHFA can claim that there is an authorization to mislead about it in the conservator's Incidental Power ("Take any action authorized by this section, in the best interests of FHFA.")
Just like occurred in 1989 with the FHLBs, with a Separate Account to reduce the principal of the obligation RefCorp with the taxpayer.