Fannie Mae-No Politics (FNMA)

[Wise Man]

DeMarco "fooled both sides of the aisle" that wanted to be fooled.
They bought the rhetorics:
"Government implicit guarantee on MBSs"
"Wind-down FnF by raising their guarantee fees"
"A NWS dividend is a typical renegotiation of obligations. Thus, within the FHFA-C's power."
"Conservatorship is being very profitable for the taxpayer"
Etc.
In the meantime, DeMarco was enacting regulation that enables the continuation of the Separate Account plan and the poison pill of including the payment of Securities Litigation judgment in the FHEFSSA's definition of Capital Distribution (#3). This way, as an exit strategy, he made sure that at some point in the future, everybody will turn their heads toward the Restriction on Capital Distributions and their exceptions, as a Separate Account plan, and where he inserted more exceptions in the July 20, 2011 Final Rule, for the phases 2 and 3 (CFR 1237.12: capital distributions for their recapitalization outside their balance sheets), in a rule that clearly states in (c) that "it's intended to supplement" the restriction by statute, a word that transmits the idea of being a follow-on plan.
As of end of September 2023, FnF have accumulated so much capital that they are financially compelled to redeem the costly JPSs, because, afterwards, they would still meet the threshold of TIER 1 Capital > 2.5% of Adjusted Total Assets.