Fannie Mae-No Politics (FNMA)

[Wise Man]

3rd step unwinding the Separate Account: Treasury Stock, retired.

$150 billion cash refund from the UST and the FHFA, plus a posting in their Retained Earnings accounts of the Common Equity held in escrow ($236 billion)

By the way, the cash refund is $150.9 billion, reduced from an actual claim of a $153.3 billion refund, in order to comply with the Asset/Liability Matching principle. So, the UST got lucky.
$11 billion worth of Treasury Stock combined relates to stock buybacks, illegally purchased by the controversial Timothy Howard (former Fannie Mae CFO) to boost his EPS target bonus, and his counterpart at Freddie Mac (Charter-unauthorized investments)
It's a contra Equity account (negative balance). It also reduces the Core Capital (it reduces the common stock par value). Later, Howard dares to talk about capital nowadays.
Once calculated the Common Equity as of end of September, 2023, as follows (Accounting Standard changes, posted in the tweet cited)

BV ($B) FMCC/FNMA:106/130
-1.2/19.5 Beginning bce 6/2008
+80/94 Acc Total Comprehensive Income, adjusted for these Accounting Change charges:
4/2009: 5/3
1/2010: -11.7/3.3
1/2020: -0.24/-1.1
+9.3/9 CRT,net(RE)
+18.7/6.8 PLMBS settlement:73%/27% based on AOCI in 6/2008.#Fanniegate https://t.co/EmZTYgahAE

— Conservatives against Trump (@CarlosVignote) November 5, 2023

, if we want the posting in the Retained Earnings account be equal to the Common Equity, the Treasury Stock must be retired.

Freddie Mac Balance Sheet as of September 30, 2023, to see the Treasury Stock in Equity. Also, the Accumulated Deficit Retained Earnings account, pending the adjustment ($44.7B additional reduction of Retained Earnings. See the image at the end of the post) for the $44.7B SPS Liquidation Preference absent from the balance sheet. Total SPS LP = $117.3B, including the $2.7B scheduled to be increased on December 31, 2023:


On to another matter, Bradford insists on

Continued retention of earnings is the main one i watch

Can't he see what really happens with the continued retention of earnings (Common Equity)? It's eliminated when the SPS LP is increased for free in the same amount (Unless it's held in escrow to uphold the law, under a broad Separate Account plan that began with the dividends, that he covers up). Concealed when the SPS LP increased for free, is missing on the balance sheets, but it's easily seen in this adjusted table: