There is no such thing as "perpetual Conservatorship".
The U.S. Treasury was directed in the Dodd-Frank law of 2010 to put an end point to the Conservatorship, and it attached to a 3-option Privatized Housing Finance System revamp (2011 Report to Congress), with a recommendation to increase the guarantee fees that correspond to this Basel framework for capital requirements.
A law and a Report to Congress are the essential formalities under the Rule of Law. The plotters want to substitute it for chit-chatting.
This doesn't mean that FnF wouldn't be released until they are fully capitalized, meeting the corresponding thresholds.
So, the Treasury wrote the endgame, not the exact end point.
Yet, here we are with the Common Equity that keeps on piling up, in accordance with the law.
Currently, with a CET1 > 2.5% of Adjusted Total Assets in both FnF, it seems that the goal is to get rid of the unwanted JPS holders before the announcement of a Housing Finance System revamp (compliance with Tier 1 Capital > 2.5% of ATA afterwards -ERCF-)
No one cares about the reasoning behind. Blame the FHFA in its capacity as conservator that continues to act "in the best interests of FHFA" (remember: "authorized by this section"), both with the Separate Account plan and now with an extended Conservatorship.
The important thing is to don't lose track of the numbers that later are reflected in the adjusted Fair Value of each stock class. And, the key, we will never allow the JPS holders to get rebates out of pity. At least, not with FnF's money.
All the Equity holders deserve a compensation for Punitive Damages. A claim against the DOJ as vicariously responsible of the FHFA's actions, and against the corrupt litigants and their accomplices with the Government theft story.
Quit peddling your "Nationalization" and "wind down" deranged diatribes, aiming to manipulate the stock prices and change what is clearly set forth in the law, rules and basic concepts in finance (Dividend, a distribution of Earnings. You need a positive balance for its distribution, in the Retained Earnings account. Today: Adjusted $-216 billion)
