Fannie Mae-No Politics (FNMA)

[Wise Man]

Gary Hindes should read more and write less.
He conceals the existence of a scheme with assessments sent to Treasury, in the form of capital distributions and under the guise of dividend payments (restricted and unavailable earnings for distribution as dividend, with accumulated deficit Retained Earnings accounts. So, no actual dividend was ever paid because it cannot exist), using the exceptions to the Restriction on Capital Distributions in the law, U.S. Code §4614(e).
The FHFA-C's Incidental Power allows it to mislead during the process of rehabilitation of FnF.
A NWS dividend was necessary because the 10% dividend prompted the capital deficiency, draws from UST and more SPS (death spiral)

The Net Worth is never a variable to measure the soundness in a financial company, but the Core Capital, CET1, etc, where is included the Retained Earnings account that absorbs future unexpected losses (Capital ratios)
Remember that the expected losses are already covered by the Loan Loss Reserve (CECL accounting standard), in the form of Allowance for Loan Losses (Asset write-down) worth $7.4B and $8.7B in Freddie Mac and Fannie Mae, respectively, as of end of September, 2023, that could be released down the road if the management's expectations change, as witnessed the last two quarters, for instance.
ALLL isn't, therefore, recorded in the Net Worth, but it's recorded as TIER 2 Capital for the Capital ratios (the Total Capital that has to meet the Risk-Based Capital requirement), with some limitations, because, theoretically, they are expected losses and the assets already written down.

So, we need the Capital ratios, not the Net Worth, since FnF are building SPS in their Net Worth, when they increase the SPS LP for free in the same amount as the Net Worth increase in the quarter, and SPS don't absorb losses. These people think they found the geese that laid the golden eggs, increasing the Net Worth with gifted SPS (currently concealed, as these gifted SPS are missing on the Balance Sheets. Financial Statement fraud)
This is why the most important piece in the capital structure, the CET1, exists, where Retained Earnings is included. JPS are AT1 Capital ("the others") and the SPS aren't even considered regulatory capital due to its cumulative dividend feature (no loss-absorbing capacity)
SPS LP increased for free as compensation to UST, is another capital distribution (read the definition in the FHEFSSA) restricted, that falls squarely within the prior scheme of using the exceptions to the restriction. In this case, for the recapitalization (CFR 1237.12) with the Common Equity held in escrow with the offset (reduction of Retained Earnings) attached to this SPS LP increased for free. The image shows how the Common Equity is escrowed, pending unwinding the operation (FnF don't post these gifted SPS on the Balance Sheet, to evade showing this operation with the offset)

Their Adjusted Retained Earnings accounts stand at $-217B together.
But $236B with the Separate Account plan.
The scammers seek to undermine the Common Equity. The don't know that the JPS need the Common Equity in the first place, to recover their par value once FnF resume the dividend payments (Adequately Capitalized +Table 8: Payout ratio)