Fannie Mae-No Politics (FNMA)

[Wise Man]

The Warrant was a SPS collateral if we...

This reply to navycmdr appears on the Freddie Mac board.
Here.

It's worth stressing that the taxpayer's assistance MUST be repaid asap.
Although the Preferred Stocks are permanent securities, they are always redeemable at the option of the issuer.
Although we don't have redemption dates with the SPS, unlike the JPS, they were simply reduced with the assessments sent to Treasury under the guise of dividend payments (restricted and unavailable earnings for distribution), in accordance with the Law (exception to the Restriction on Capital Distribution)

Mnuchin attempted to thwart the Separate Account plan, adding in the September 2019 SPSPA amendment, a new covenant "Optional Pay Down of Liquidation Preference Following termination of the Commitment".

Too late! (Besides ill-conceived, as the taxpayer's assistance must be paid down asap). The SPS LP corresponding to the draws from UST, was long gone.
Today's SPS LP increases for free (restricted) are part of the phase 3: another way to hold the common equity in escrow (for recapitalization: CFR 1237.12), through the offset attached. It will be unwound (FHFA-C's Incidental Power: "Zing!")