⚠️Attention to the figures adjusted for the Separate Account plan.
The only plan that legalizes every action.
1st. A cash refund of the amount due (Latest: $77.2 billion): SPS overpayment + CRT expenses, net + PLMBS lawsuit settlement (27% of total, based on its AOCI as of June 30, 2008, in comparison to Freddie Mac. The unrealized losses prompted by these PLMBS sold with fraudulent information and the mispricing in general)
2nd. The funds sent to UST were assessments under the guise of dividend payments, applied towards the reduction of SPS and Recapitalization outside their balance sheets, because they are the exceptions to the restriction of these capital distributions, besides no dividend was ever possible with Accumulated Deficit Retained Earnings account (adjusted $-216B FnF together, June 2023). Therefore, this Common Equity sent to UST (Total Comprehensive Income) is considered to have been held in escrow all along, and it needs to be recorded now as such on the Balance Sheet, with a posting on the Retained Earnings account.
We also take the opportunity to retire the Treasury Stock (stock buybacks to boost Howard's EPS target bonus) that currently is reducing the Net Worth and regulatory capital, which would reduce the Retained Earnings account.
The PLMBS lawsuit settlement, plus the refund of the CRT expenses, net, boost the Retained Earnings account.
Latest posting: $124.5 billion.
🚨Focus on the new threshold for the release from conservatorship of CET1 > 2.5% of Adjusted Total Assets, instead of Mnuchin/Calabria's CET1 > 3% of Total Assets in the January 2021 amendment of the PA. It translates into an authorization to redeem the JPS, as the ERCF requires a TIER 1 Capital > 2.5%. So, if you meet CET1 > 2.5%, you meet TIER 1 Capital > 2.5% and the JPS (AT1 Capital ) are no longer necessary.
TIER 1 Capital = CET1 + AT1
It's estimated that, under the Separate Account plan, Fannie Mae was just $1 billion short of this threshold, as of June 30, 2023.
The Common Equity is used to calculate the BVPS required in the case of Taking by the UST.
Otherwise we would be talking about PER 14 times, plus the value of the Deferred Income, net, in the case of Accounting standard change, because currently this income already collected is in limbo (recorded as Debt), instead of Net Worth.
Beware of the internet trolls with happy, smile emojis to provoke us, like "Hi Rum!" commodore stating that FnF are retaining earnings without adjusting the figures, because that's not the reality concealed with Financial Statement fraud in FnF (gifted SPS absent from the balance sheets)
Or Bradford, stating that the $301 billion sent to UST is gone. That doesn't rehabilitate FnF (prerequisites from Justice Alito and judge Willett), but the opposite. Today FnF are in the worst financial condition ever.
