Fannie Mae-No Politics (FNMA)

[Wise Man]

Bullet points: The BVPS rises to $112.
Figures adjusted for the Separate Account plan.
Common Equity= $129B.
The key: CET1 = 2.6% of Adjusted Total Assets (Leverage ratio). Remember that it was snubbed the threshold for the release from conservatorship of CET1 > 3% of Total Assets, established by Mnuchin/Calabria in the January 2021 PA amendment, 12 days before Sec.Yellen was sworn in and nocturnality.

But, watching that the ERCF requires Tier 1 Capital > 2.5% of Adjusted Total Assets, the threshold for release is considered ostensibly overblown, designed to encourage a swap JPS for Cs, and it was lowered to CET1 > 2.5% of Adjusted Total Assets, which means that once it's met, FnF can redeem the JPS, as they would be in compliance with the ERCF.
Tier 1 Capital = CET1 + AT1 (JPS)
Therefore, with CET1 = 2.6%, the JPS can be redeemed for cash and Fannie Mae would meet Tier 1 Capital > 2.5%.
The Common Equity is required for a Taking but, in a takeover, the fair value is a PER 14 times, plus the Deferred Income, net, if the Accounting Standard of the upfront g-fee is changed (a Delivery fee, instead of g-fee), as it would enable its amortization into earnings in one fell swoop.
PER 14 times = $255, reflecting the blowout numbers posted yesterday.
Other theme is that it may need further adjustments, as it's been captured a very good quarter that isn't representative of coming quarters, control premium?, forward PER?, etc.

$491mll expenses in phony damages, incl.,granted by J.Lamberth(Back divs, he told us👇),that will be recovered.
PER 14x =$255 (+DI,net,if that's the case), calculated (JPS redeemed):
Annualized adjusted Q3 EPS
No TCCA fees/CRT expenses
No provision for loan losses(Fully reserved) pic.twitter.com/FIEjTtYTwZ

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