Fannie Mae-No Politics (FNMA)

[Wise Man]

And quit posting statements:

"at least according to Mnuchin - SPS and JPS will be converted to commons together, in one go."

Wishful thinking to benefit his buddy Berkowitz, is not how Finance works (Utility Model = an official makes everything up)
Or posting emails between WH advisors and Treasury officials.
Mnuchin comes from a Fixed-Income Department at Goldman Sachs. He thought that the JPS have no strings attached and their holders are just outsmarting the holders of similar obligations in the same company with an outsized dividend rate, ignoring that they are recorded in Core Capital for a reason: loss-absorbing capacity capital-related, because the dividend might be suspended at some point. Which is what has happened. Regulatory risk: bound for a Privatized Housing Finance System since February 2011 (Report to Congress, as recommendations on ending the conservatorships)
Now the FHFA Director feels sorry for the JPS holders and attempts to grant them back dividends.
The JPS would be wiped out today if the Treasury has raided all of their capital (Common Equity), including now through the SPS LP increased for free every quarter that carries an offset (reduction of Retained Earnings -Common Equity-), unless this Common Equity ($236B as of Sept 30, 2023) is held in escrow.
Get a grip and join the Separate Account plan as per the law and regulation.
Pay punitive damages too, for stock price manipulation: "We've been robbed!" ($301B is gone). Or the lie about what the SCOTUS said: "FHFA can do whatever the hell it wants", similar to what Ackman implied here, about FHFA having absolute discretion in its actions, when Justice Alito began with "rehabilitate FnF" as prerequisite (in a financial company, the financial condition is measured with the Capital ratio and with the ability to meet the debt obligations, preferred stocks included, i.e., sound and solvent condition, respectively), just like judge Willett (any action "within the enumerated powers"). So, more of the same: Rehab power (Put -restore- FnF in a sound and solvent condition), and the "beneficial to the Agency and the public" (spinning the "in the best interests of FHFA" of the Incidental Power), along with "may" in its Power ("May put..."), is about the sale of NPL, RPL and REO inventory, etc (supposedly only when FnF are in a dire state, necessary to reduce risk exposure. Soon it became pure extortion of resources. For instance, the U.S. exited recession in June 2009). But under no circumstance it's about taking their capital away (Retained Earnings) and definitely, not through the Charter-unauthorized CRT operations (breach of the Credit Enhancement clause)
Also it's about other activities, for instance, setting up CSS, launching the UMBS, the CSP, new products like the Resecuritizations, new Capital Rule, and fine-tunning the grounds of a Housing Finance System revamp.