Fannie Mae-No Politics (FNMA)

[Wise Man]

It's time to put the "Finance for attorneys" to rest.

Remember, they stopped siphoning actual money almost 4.5 years ago. The ballooning liquidation preference doesn't hurt the companies at all.

Of course! The SPS LP increased for free doesn't appear on the balance sheets, no damage at all!
Once consolidated on the balance sheets, we see how the Common Equity is held in escrow, in order to comply with the CFR 1237.12 (a capital distribution applied towards the recapitalization) that supplements (follow-on plan) the U.S. Code §4614(e).


And the key, it would have uncovered this Separate Account from the onset, as the dividend was also a capital distribution that necessarily has to be applied towards the exceptions to the Restriction on Capital Distributions in the two provisions mentioned (reduce the SPS and recapitalization). Not only to comply with these provisons, but also with the fact that no dividend was ever possible to pay, out of an Accumulated Deficit Retained Earnings account, as a dividend is a distribution of Earnings. You can't distribute what doesn't exist.

Just call everything that is damaging, like a debenture: "off-balance sheet" (FnF), "off-budget" (German government), "external position" (Bundesbank) or "Deferred Asset" (Federal Reserve).