Fannie Mae-No Politics (FNMA)

[LuLeVan]

One could also argue that it is an "investment" for Fannie and Freddie to buy back their JPS at the current market price. Core capital (not CET1) would increase by about $30 billion (the difference between $33 billion balance sheet value of the JPS and their market value of about $3 billion). But that's not allowed in conservatorship.

It is ridiculous to claim that buying tens of trillions of dollars worth of MBS would be a legal "investment" while the much cheaper - and much more effective - buyback of JPS (costing only about $3 billion) would not.

MBS purchases isn't a capital distribution, but investment.