Fannie Mae-No Politics (FNMA)

[Wise Man]

removing their "unfair advantages in capital standards" in the FHEFSSA (quote taken from the 2011 Report to Congress), for delivering below-market guarantee fees, as required in the Charter Act.

Therefore, all part of the Charter dynamics. However, the UST "forgot" its part, providing financing to FnF as a last resort, at rates similar to Treasury yields (original UST backup. Subsection (c). Operations financed either with Debt or Equity), after having colluded with Calabria/Pelosi, ambitious of public recognition, to draft HERA.

A Goldman Sachs alumni spotted their weak capital standards first, and he just needed to gather his buddies hedge fund managers.


The capital could be easily depleted with the following "significant (manufactured) losses" (White House). 99% of Freddie Mac's Capital Deficiency and subsequent issuance of SPS during 2008-2010 was caused by:
70%➡provisions set aside equal to the concession granted to borrowers in modified loans (flawed Incurred Loss Accounting standard, changed in January 2020 for CECL). Hence the spree of Obama's programs to modify loans even to borrowers current on their payments.
11%➡10% dividend payment.
15%➡DTA valuation allowance.
3%➡initial $1B SPS issued for free, debited from the Additional Paid-In Capital account (Core Capital)

The Warrant prospectus clause 2.1 is the evidence of an assault attempt on the ownership by Wall Street and the Community Banks: "Shares assigned to any Person", besides the lie of "anti-dilution protection of the (Non-convertible) JPS" from Bradford, something not written anywhere because it's for the convertible preferred stocks regarding the common shares outstanding, and the fact that he refers to it as "anti-loss protection", for their "Equity restructuring" slogan.

Letter from the ICBA president in 2008:

It's estimated that the Community Banks own between $15B-20B in GSE Junior Pref.Stocks (42%-56% of total outstanding) and affects to almost one third of the 5,000 Community Banks of the Association.

Let me guess, it kick-started the current fraud of Held-To-Maturity portfolios in the Community Banks (another "anti-loss protection" scheme)