Fannie Mae-No Politics (FNMA)

[Wise Man]

Screenshot shows the moment FHFA prohibited this payment of Securities Litigation judgment, in the Preface of the July 20, 2011 Final Rule that amended the definition of capital distribution in the FHEFSSA, to include this case.
The FHFA stressed that it was applying the Restriction on Capital Distributions in the FHEFSSA (U.S. Code §4614(e)), which was "supplemented and shall not be affected or be replaced", by the CFR 1237.12 enacted in this same Final Rule, for the phases 2 and 3 of the Separate Account plan: capital distributions (deplete capital) for their recapitalization (build capital) outside their Balance Sheets.

The reader should be aware that this same screenshot is being used as a masterpiece of explanation of the conservator's role and endgame.