Fannie Mae-No Politics (FNMA)

[Wise Man]

The JPS aren't part of the Net Worth amount, which is what Louie_Louie was referring to here:

Show us current accounting that proves 33B is part of the current capital quoted (the 110B retained)

With $111B Net Worth as of end of June, 2023 in FnF together, and $304B SPS LP outstanding, including the ones absent from the balance sheet due to Financial Statement fraud, the entire $111B Net Worth is comprised solely of SPS, that is, it belongs to the UST, someting that navycmdr still doesn't understand when he posts happy emojis after writing:

stockholders’ equity

The key is that FnF post a negative balance (Accumulated Deficit) in the Retained Earnings account, caused by past losses (The Retained Earnings account in the Balance Sheet absorbs the losses of the Income Statement of any given period and it can be negative) and the trick of Recapitalization outside their Balance Sheets and having repaid the SPS under the guise of dividends (distribution of Earnings) instead of simple cash, preventing this pot from replenishing. This is why I calculate a Common Equity adjusted for the Separate Account plan.
In other words, if you aggregate all the items in Equity, the Net Worth amount translates into JPS getting zero and the common shareholders getting zero in the case of Liquidation today.

Other theme is that in the picture of Equity and in regulatory capital, the JPS are always recorded at their par value regardless of the stock market price.
The JPS are obligations and FnF record such obligation at full par value, recognizing they have an obligation with them.
For instance, the JPS of Fannie Mae are worth par value on the balance sheet: $19B, but with a Net Worth of $73B on September 2023, that NW belongs exclusively to the Treasury as owner $195B SPS LP today, including the SPS increased for free that are missing ($74B)
And the picture doesn't get better every quarter: you may say that FnF are retaining earnings in their Net Worth but, in truth, they are building SPS.
PROOF: The $74B Net Worth (stockholders' equity) built, coincides with the $74B SPS LP increased for free that is missing on the Balance Sheet. Once these SPS are posted, the Retained Earnings is wiped out with the offset attached to the gifted SPS (reduction of Retained Earnings). Otherwise Fannie Mae would post double NW ($74B + $74B)

STOCK VALUATION
The market price of the JPS (9% of their par value) discounts the years left to resume the dividend payments (like any zero coupon fixed-income security), watching their Core Capital stuck at an adjusted $-194 billion together every quarter. 17 years left, but every quarter there is 17 years left if FnF ARE NOT building regulatory capital due to the gifted SPS.
BOTTOM LINE
Difference between:
Value in Equity and regulatory capital: full $19B JPS par value in Fannie Mae ($33B together)
Value in the Net Worth: $0 (aggregation of all the items in Equity)
Market Value: stuck at 9% of par value every quarter.